What is a credit card?

for my class

Answers:    Beau was right, but his explanation was a moment or two weak.

Basically, a credit card is a loan. When you buy something with a credit card, your credit company (Visa, Mastercard, etc) will foot for that item. Every month, your credit company will send you a bill with a total of how much you owe them. If you don't recompense the whole bill (usually there is a minimum monthly payment) they will usually charge you interest. So if you don't remuneration off a $100 credit card bill, next month it will be $110 if you enjoy a 10% interest rate.
Basically it allows you to charge an item, that a company will pay for. You by using the card, have agreed to pay packet the company later on. Most people bring back into a problem, as they forget to put aside the money to pay the debt. Captain awesome had it adjectives correct except for his example. Monthly interest on $100 would be $0.83 based on a 10% interest rate. The interest is based on an annual subtraction, not a monthly one.
good jobcaptain


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