Glossaries

What is a grace period?

A grace period is the amount of time after a due date of a bill that may pass before late fees are applied. Grace periods are usually 10-25 days and may depend on the company.

Why is credit important?

If you are looking for a loan, credit card, or low interest rates, having good credit will increase your chances of getting one of these. If you have credit problems, it may be hard to acquire a loan when you need it the most.

What is the difference between a secured credit card and an unsecured credit card?

A secured credit card means that a security deposit account is needed to secure the card. The security deposit will equal your credit limit. This amount allows you to build your credit history while enjoying all of the benefits of a credit card. An unsecured credit card is set in accordance with your credit history. There is not a security deposit required for this type of card. As your history changes so will your credit limit.

What is credit?

Credit is the reputation you have earned for paying your bills on time that makes it possible for you to receive loans, etc. with the understanding that you will pay for them later.

Can a credit card company raise my interest rate without letting me know?

Yes, credit card companies can raise your interest rate and there is no telling how high a certain company will raise the rate. You can avoid this high interest hike by making timely payments every month, even if it is just the minimum payment. Some credit card companies will even raise your interest rate if you are late with other bills besides your credit card bill.