Page 44 - Book6E

CREDIT CARD
1 The bank or credit card company sends you a statement at the end of every month, which you then have to pay. Hopefully, you’ve kept enough money aside to do so.
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2 If you can’t pay your total balance when you receive your statement, you have to pay interest until the balance is paid off. ......................................
3 If a person or merchant makes a charge on your card that they are not entitled to make, federal law says you are only liable for $50 of that amount as long as you notify the bank or credit card company within 60 days of the charge.
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5 Purchases you make with a credit card are usually insured. This is particularly helpful if you order some- thing that has to be shipped. Make sure you check this benefit with your credit card company so you can avoid paying twice for insurance when shipping.
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6 If you pay your bills on time and don’t carry a large balance, you can build a good credit history and improve your chances of obtaining a loan when you’re ready to make a big purchase like a car or home.
Credit cards can make sense for making large purchases that take several months to pay for as long as you get a reasonable interest rate. An even better solution is to save up for the purchase beforehand.
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Plastic Money