Your First Credit Card

Getting a credit card for the first time was a pleasant experience. For the younger generation, it can be compared to when getting driver's license at the age of 17 years first. But credit cards are not just about having fun. Many responsibilities accompanying a credit card. Here's a short version of what happens when you accept credit cards for the first time:

Your Credit Card Sent Through The Post.
As soon as the application is approved, the credit card issuer will send you a credit card with your name on it to the address listed on your credit card application.

Before you can use the new card, you must activate it. At the front of the card there will be a sticker with a phone number to call to activate your credit card. The activation process will require you to enter a credit card number and other personal information. You will not be able to use your credit card until you activate it.

In an envelope along with your credit card, you'll get a credit card agreement, lengthy documents that include the terms and conditions of your credit card. Credit Card Agreement you describe the features of the account and how and when you will be charged to your credit card, etc..

Using a Credit Card.
Your credit card has been given a credit limit, which is the maximum amount that you can use. You can make transactions up to your credit limit. Credit card issuers can take back some of the credit limit if you are approaching the limit of the credit card transaction is too fast. Because they think it's risky when you use too much. You may be charged or will get a higher interest rate if your transactions through credit limits.

When you make a purchase, credit card terminal (EDC) will check to the credit card issuer to make sure your credit card is valid and that you will have a credit balance that is available to make the purchase. Once your transaction is approved, a receipt is printed. You will sign a receipt and bring home your purchases.

Conducting Credit Card Payment.
A few weeks after you receive your credit card, you'll get a bill in the mail. The bill will be explained in detail, the transactions have been made on a credit card and the minimum payment amount and due date of payment. You must pay at least the minimum payment by the due date or you will be charged a late fee. Missed two consecutive payments, the interest rate will be increased by an additional penalty fee. If you do not have to pay the bill at all, your credit card will be fixed and sent to a collection agency.

Make sure you make a payment far enough in advance in order to accept credit card before the due date. The credit card issuer may charge a late fee if your payment is received after the due date even if you pay before the due date.

Although you are allowed to make minimum payments, it is best to pay credit card bills in full at the end of each month. That way you can avoid paying interest on your account and you keep yourself from accumulating credit card debt.

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