Understanding Credit Cards
Hey there, everyone! Let's talk about credit cards. Let's make it simple so it's super easy to understand. It all started when I asked my parents about credit cards. I was curious if the card companies charged interest like banks do on loans. They said no, and they also told me about the cool perks their cards offer. This got me thinking about how it all works and how the card companies make money. My curiosity led me to research more about credit cards, which inspired me to write this blog. What is a Credit Card? A credit card lets you borrow money from the bank to buy things, which you pay back later. But you must remember to return the money. How Do Credit Cards Work? Spending Limit: You can only spend up to a certain amount. Monthly Bill: At the end of the month, you get a bill showing how much you’ve spent. Paying Back: If you pay the full amount by the due date, you won’t be charged any extra money, called interest. What’s Interest? Interest is extra money the bank ch