how does credit cards work?
151894
1.  You go out and pay for dinner with someone else's money, with the understanding that you will pay them back, with interest.  \n\n2.  You continue to do this on a regular basis.\n\n3.  You continue to pay for that taco dinner for the next 25 years.
287928
The bottom line is you need to know some terms before agreeing to either the credit or debit card. You should know as a minimum: \n\nCredit Cards\n1)the annual percentage rate(apr) _ The annual percentage rate--APR--is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate. )\n\n2)grace period to pay the full balance without being charged interest(The grace period is the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have “25 days from the statement date, provided you paid your previous balance in full by the due date.” The statement date is given on the bill. )\n\n3)if there are any fees(Most credit cards charge fees under certain circumstances eg annual fee, cash advance fee))\n\n4)how finance charges are calculated (The finance charge is the dollar amount you pay to use credit. The amount depends in part on your outstanding balance and the APR. )\n\n5)if there are any transaction charges for such things as balance transfer, late payments, cash advance, going over your limit, etc. \n\n6) Credit limit (The credit limit is the maximum total amount--for purchases, cash advances, balance transfers, fees, and finance charges-you may charge on your credit card. If you go over this limit, you may have to pay an “over-the-credit-limit fee.")\n\n\nDebit Cards\nWhen you pay with a debit card, the money is automatically deducted from your checking account. \nMany people prefer debit cards over checks for two reasons:\n\n-You don't have to carry your checkbook and present identification, but are still able to make purchases directly from your checking account. \n-You pay your bills immediately, unlike when you use a credit card and get the bill later.
73613
A merchant takes you information (electronically or another method), gets verification of your information and tells the store clerk to let you out of the store with the stuff you want.  Then the merchange transmits a file to the credit card processing company who then pays the merchant.  You then get a bill for what you bought and you pay the bill.\n\n[source - 1 year working in operations for the merchant credit card processing division of Citicorp]
1170492
hi there, welcome on board. \nIf you are willing to read up then there's a big chance you'll find an answer here somewhere:\nhttp://finance.ebookorama.com/\nhttp://credit-cards.ebookorama.com/\nI have had a few happy people coming back to me after posting the links so hopefully it'll do your trick!  if it does help you don't forget to give me best answer :-)
1152746
Basics. You know why?\n\nCatch them young, offer small credit limit and get them addicted.\nSee them get caught in the credit spiral.  And we, the credit card companies, make a load of money. You are hooked, hehehe. It is much like selling cigarettes to early teens.\n\nSimple economics. Scary thing is it has worked for many decades. Ask any college student. They always are financially strapped, looking for ways to spend. So, the cc companies encourage spending. They will even offer more credit with a simple phone call.\n\nIf you are smart, do not sign up now (assuming you a U student)and spend whatever CASH you have. Get the card only after you have a job after your Unv.degree and even then you have to be smart in using the card and pay the entire balance at the end of the month. Money is not free.
1090470
basically a secured credit card is one based on a deposit, say you deposit $ 100, and they give you a credit card of $ 100 or more (sometimes they may offer 2-3 times the deposit).\nIf you have no credit, you can probably get a store credit card quickly and easily and then by that virtue a major unsecured credit card within  a couple months.
577679
They generate a number from the credit/value you bought.\nExemple if you have a $20 card\nV+20 : V/343 : 2*V/5423 \nThis will give the number 40 0058 000737.\nThey have a formula to create the number, and with that formula the Cell phone OR a service operator computer(depending on the country and company) use the reverse formula to find out IF the number é original and WHAT value is.\nMost of them uses a serial that identificates that card, when and where were made. \nExemple, using my formula  V+20 : V/343 : 2*V/5423 \nIf you insert a numebr starting with 0 the phone wont validate, cause can't add 20 to a number and get 0 (unless you bought a -$20 card! joke).\nIt is much more complex them this...\nThey usually have a big and secret formula with long prime numbers called Algorithm.\nTake a closer look at the wikipedia source.\n:)
783165
Financial problems are often caused by using credit.  If you need to use credit to buy things you don't have the cash to buy, where is the cash going to come from after you've bought on credit.  Credit companies love to know that your next paycheck belongs to them, and the next, and the next.....
988856
In general, everyone is correct. A debit card always requires a PIN, and a credit card usually does not.\n\nBut, you can have a PIN on a credit card.  Some credit cards allow you to make cash withdrawals from ATMs, but you have to set up a PIN beforehand. (This isn't a good idea, usually, because you usually pay an even higher interest rate for cash advances from a credit card.)\nConversely, there are a lot of banks that issue debit cards that can be used just like a credit card too, so you can make a purchase without entering the PIN at the store.\nAnyway, it can be confusing, so it is not a silly question.
68485
Hi - that depends entirely on the payee, with which bank his credit card merchant account is, which point of sale machine the merchant uses-and on how that person does business.  Many credit card merchants do not process their transactions daily-some wait till they have a certain dollar amount or certain number of transactions and then make their 'deposit' of a group of transactions. Others have arrangements for their transactions to be automatically processed (these are usually very high usage merchants).  A good example of this: when you use your credit card at gas stations, regardless of whether it is a holiday or not, you will see your transaction immediately from some stations and a day or two later from others.  In addition, you may see a $1-3 charge on your account that is a 'holder' amount to verify to the merchant's processor that the card used is valid; this small amt vanishes when the real cost of the gas goes through.
898454
A credit card company will solicit customers to open a new account, sometimes at a lower rate than their current card or cards, and offer to transfer the balances from the customer's old cards over to the new card at some reduced rate.  This sounds like a good idea because the customer gets a lower interest rate and the new company gets a new account (usually with a substantial balance).  The trick here also is that it frees up credit on the old cards and tempts people to recharge on those cards which yes, it does give more available credit, but that is not necessarily a good thing.  In this country most of us are bogged down in credit card bills as it is, and the last thing that many of us need is more available credit.  I will get off my soapbox now!  I just think that credit - though necessary and a wonderful thing at times can so easily be abused, usually by the people least able to afford that and you end up paying thousands for absolutely nothing.  Just be wary and careful.
456519
Credit cards are easy to get.  TOO easy if you ask me.  You can apply online, call the company, or apply through your bank.  BE CAREFUL though because they will give you a card and a maximum limit and it is so easy to just start spending.  I have a friend who racked up credit cards when she was 17 and 18 and she barely, barely paid them off (she is 27).  They are not your friends.  Make a habit of only spending what you make and having one to only use in emergencies like unexpected car repair.  Good luck and God bless.
554135
In UK it depends on the Interest Rate in your credit card.\n\nMost of the Credit cards have high-interest rates, probably the majority.\n\nA credit card that gives rewards by points have a high-interest rate also the ones that have Mileage (that accumulates miles)\n\nBut the average charge for an overdue bill of a credit card will be 18.8% to 25%.\n\nFor example you had received your credit card bill with the amount of £1,472.80 (Thousand four hundred seventy two pounds with eighty cents) And you didn't pay on May 22, then the interest will be of 23.4%, so in your next bill it would appear £1,472.80 + (What you waste on the month with your credit card) Ex(£356.79) + the interest of 23.4% it will be (£344.64)\n\nSo your credit card will be in a total of: £2,174.23\n\nBe very careful with the credit cards, it's a bad business of the banks, so try to maintain it and do not waste too much on it.
652932
You would need to have a secured loan.  Secure with some sort of item so that the lender could get their money if you default.\n\nIf you're looking for a credit card, there are cards out there that you give them $500, and then you have a $500 limit.  It helps you build credit.
1123389
its called a cash advance, they incure really high interst rates so be careful, you first have to set up a pin number with you credit card first
1186750
WHAT THE HECK DOES THIS HAVE TO DO WITH CREDIT
216252
The best credit card for anyone is a Visa or Mastercard debit card (not technically a credit card).  If you need the use of a credit card and can afford to pay for it, just use that money to open a checking account and use the debit card instead.  If your intention is to build your credit, do it with other forms of debt like an auto loan.  The only good credit card is one with a zero balance.