| A credit card offers just that -credit, the right to | | | | from your account when you make a purchase. |
| borrow funds from a lending institution. When you | | | | Secured credit cards are essentially a combination of |
| make a purchase or withdraw cash (usually called a | | | | the two. They look like a credit card, but you must first |
| cash advance), funds are drawn from your "line of | | | | deposit money with the card company. The amount of |
| credit." You pay back the amount you borrowed or | | | | money you deposit becomes your credit limit. |
| "charged" each month, or carry over to the next | | | | Choosing the right credit card for you can be too |
| month (revolve) a certain amount that was borrowed | | | | easy. Unless you live in a cave without mail, Internet or |
| and you are assessed an interest charge. | | | | phone service, you are probably on the receiving end |
| You are then responsible to pay the interest charge | | | | of dozens of credit card offers every year. Some of |
| as well. Credit cards carry a brand logo (e.g., Visa, | | | | these offers may look like good deals but have |
| MasterCard, American Express, etc.) and are | | | | attributes hidden in the fine print that make them a bad |
| accepted by participating merchants. When you use | | | | choice. That is why it is always important to research |
| your credit card, the transaction requires a signature. | | | | the best credit card offers available for your situation. |
| By contrast, ATM cards let you withdraw money | | | | |