Wells Fargo Credit Report Monitoring
2010
Confused about how Credit Cards Work?
I’m about to be 20 in April and I want apply for a credit card. I’m a little naive to how they work. I was looking at the Wells Fargo Reward Card at Wachovia and it was all gibberish to me! This is what is said “Enjoy no annual fee, and an introductory 0% fixed APR on purchases for 6 months, 3.9% APR for 6 months on balance transfers—as low as 13.65% APR variable after.
Make purchases with confidence—you’re not responsible for unauthorized transactions when you report them promptly, and we monitor your account for unusual activity to prevent fraud. ”
I’m not really sure how I pay off the money (I know it’s monthly but other than that…) I would probably get one where my limit was $500. So how much would I pay a month? Say I bought $200 worth of something or $400 in 1 month. How much would I pay? And the interest? I just don’t really get it. That’s probably sad for a 20 year old to say but I need a little help. Any thoughts out there?!
You have to pay a percentage of the total each moth. Look at the details on the offer to see how much that is. So lets say you bought $60 worth of stuff one day and $40 worth another. You owe $100 plus interest. You might need to pay a minimum payment of $10 (10%) on your next bill.
You have to pay the minimum each month, but you can pay more than that. I pay my card off completely each month. If you do that they you do not pay any interest. If you just pay the minimum then it will take you a very long time and cost you a TON in interest. This is where many people get into trouble. They think that by paying the minimum they are paying down their balance. While this is true, they are still racking up interest so they take 5 steps forward and 4 steps back.
Importance Of Personal Credit
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