General FAQ

  • What is the difference between a credit card and a debit card?

    • When you use a debit card, you are accessing funds in your bank account. This is regardless of whether you use it at the ATM, at a store, online, or even via the telephone. When you use a credit card, you are borrowing money from the credit card issuer. If you don't repay that full amount by the next billing cycle, you may be charged interest on these purchases. Generally, you cannot build a credit history with a debit card.

  • What is a billing cycle?

    • A billing cycle is the period of time between billings. For example, a billing cycle may start on the 1st day of the month and end on the 30th day of the month. Or, it may go from the 15th of one month to the 15th of the next. A billing cycle is recurring and usually on a monthly basis. A credit card issuer will summarize all the purchases you've made in that cycle and send you a monthly statement for the total amount at the end of the cycle.

  • What is a minimum payment?

    • A minimum payment is the smallest amount you can pay on your credit card bill to avoid late fees and remain in good standing.

    • If you pay less than the minimum, or make the payment after the due date, your payment will be late, and you may be charged a late fee and/or interest. In addition, there may be other consequences like negative credit reporting.

  • What is interest?

    • Interest is the cost of using someone else's money. For credit cards, the interest rate is stated as an Annual Percentage Rate, or APR, which can be found on your Account Opening Disclosure provided when you opened the account.

    • More information on interest
  • What is an APR?

    • Your APR — or annual percentage rate — is a statement of the interest rate as a yearly rate.

    • More information on APR
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