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