Credit Card Usage | Credit Card Topics

What is Accrued Interest? How Credit Card Interest Adds Up Over Time

By: Marcie Geffner, 12/16/2024

Definitions of accrued interest tend to be complicated – so much so that I'm dismayed because the concept is simple and should be easy to understand. Accrued interest is interest a borrower owes a lender, but hasn't yet paid. With credit cards, the borrower is the person who uses the card. The lender is the card company. With investments, the borrower is the corporation, government agency, or other entity that issued the debt. The lender is the investor. As both a card... read more »

What is a Virtual Credit Card Number? How VCC Technology Helps Consumers Avoid Fraud

By: Eric Bank, 12/3/2024

Now, if you buy into the premise behind The Matrix, we’re all living in some virtual dreamland. Is life but a dream? Not to those of us who feel we exist. But many credit cards do, indeed, live that double life by having both real and virtual account numbers. A virtual credit card number is a temporary, unique number generated for online transactions to protect your real credit card information from fraud. And those virtual numbers pack a punch when it comes to... read more »

How Credit Card Chargebacks Work and Protect Consumers

By: Mike Senecal, 12/2/2024

I imagine Amazon needs quite a few resources to photograph and document every single delivery in front of every single door, everywhere in the world. They do it to protect themselves against credit card chargebacks from consumers disputing transactions as unauthorized or fraudulent — which laws originating in the 1970s give them every right to do. A credit card chargeback is a payment reversal initiated by a cardholder to dispute a merchant transaction. Problems arise for... read more »

What is a Statement Balance? How to Read and Understand Your Credit Card Bill

By: Mike Senecal, 11/26/2024

Credit card debt is revolving, meaning you can carry a balance on your account — and pay interest on it — for as long as you want. I don't recommend that! Your card issuer keeps tabs on what you owe in billing cycles, typically of 28 to 31 days. Your statement balance reflects the total amount you owe at the end of each cycle. Your credit card statement balance includes the total amount you owe from the previous billing cycle, along with new purchases, interest, fees, and... read more »

What is a Credit Freeze and How Can It Help Secure Your Credit Reports?

By: Mike Senecal, 11/12/2024

Are you who your data says you are? Digital transformation has caused an explosion of data breaches, identity theft, and fraud that puts your credit report at risk even when you're doing everything right. Fortunately, regulators have stepped in to give you more control over your financial data than you may realize. In 2018, Congress gave consumers the right to direct the three major U.S. credit bureaus — Equifax, Experian, and TransUnion — to freeze their credit at no charge. ... read more »

What is a Card Verification Value? Why Your Credit Card Has a CVV or CVC Number

By: Eric Bank, 10/30/2024

What on God's Green Earth is a Card Verification Value? And why does your credit card have one of those CVV or CVC numbers anyway? Well, the cold, hard truth is that there are fraudsters out there just waiting to swipe your credit card info. A Card Verification Value (CVV) or Card Verification Code (CVC) is a three- or four-digit security number on a credit card used to verify that the cardholder has the physical card during online or phone transactions, providing an extra layer... read more »

What is a Cardmember Agreement? A Guide to Identifying Credit Card Terms and Fees

By: Jon McDonald, 9/25/2024

Even as a finance expert, I’ll admit I used to avoid reading the whole cardmember agreement until a few years ago. Here’s what changed: I was flying to Miami from San Francisco with a connecting flight in Atlanta. Amidst all the post-COVID airline craziness, my first flight was canceled, causing me to miss my connection. The airline told me my $400 flight was non-refundable, even though it wasn’t my fault I missed it — ouch. I scoured my cardmember agreement to see if I... read more »

What is the Credit CARD Act of 2009? How the Legislation Impacts Consumers

By: Marcie Geffner, 9/5/2024

Throughout my life, I've never had significant problems with my credit cards or card debt. That may be because I've had two big advantages: a good financial education and a career as a financial writer. But also, I've been lucky. Many people without my advantages have serious problems with cards and card debt. Those problems would almost certainly be much worse were it not for the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009. The CARD Act is... read more »

What is a Credit Card APR? How Issuers Calculate Interest Rates

By: Eric Bank, 8/27/2024

Credit card APR is a term that is frequently used but not always understood. Sure, most folks have a notion that it’s some sort of interest rate, but what does it include, and what does it leave out? Does it truly represent what you’ll pay to use a credit card? The annual percentage rate, or APR, is the standardized yearly rate credit card issuers charge when you carry a balance. It represents the cost of borrowing money and offers potential insight into how much interest... read more »

What is an Introductory APR on a Credit Card?

By: Erica Sandberg, 8/26/2024

Want to borrow money for purchases and then revolve balances without any finance fees added to the amount you owe? How about transferring an expensive existing debt to a new credit card that won't charge you any interest for a specific period? Welcome to the world of credit cards that offer introductory APRs. These time-sensitive deals can save you a lot of money when you use them correctly while helping other aspects of your financial life. Before applying for... read more »

What is a Credit Card Signup Bonus? How the Popular Incentive Works

By: Eric Bank, 7/11/2024

When I received my first signup bonus, I was over the moon. It proved addictive — all my subsequent credit cards had to provide this little sugarplum to earn a place in my wallet. I suspect I'm not alone in this. A credit card signup bonus is a reward a credit card company offers new customers to encourage them to get a credit card. This usually comes as cash back, points, or miles. Issuers use this bonus to attract new customers and get us to use the card immediately, which... read more »

What is a Credit Card Promotional Period? How to Manage and Maximize Introductory Offers

By: Eric Bank, 7/10/2024

My heart wanted this nifty new camera with a retro design, but my budget was implacably opposed. My solution was to obtain a new credit card with an introductory 0% APR for 15 months. What once seemed impossible now became easy-peasy. Say, "Cheese!" The credit card promotional period is when, under special terms, the interest rates of credit cards are much lower or even zero. They can apply to new purchases, balance transfers, or both. You can use the promotion period to pay for... read more »

What is an Authorized User? A Guide to the Pros, Cons & Legal Responsibilities

By: Eric Bank, 6/6/2024

An authorized user on a credit card is someone the primary cardholder adds to their account. As an authorized user, you can use the credit card just like the person who owns the account, but you don’t have to apply for the card yourself. The primary cardholder is still the one responsible for paying the bill. You get your own card with your name on it and can buy things or pay bills just like you would with any other credit card. In this article, we'll describe how to... read more »

11 Credit Card Habits You Need to Break Now

By: Andrea Woroch, 11/14/2024

Dramatic price hikes across consumer goods and services since inflation began surging in mid-2021 have prompted people to take on record credit card debt — surpassing $1 trillion at the end of 2023, as the Federal Reserve Bank of New York reported. While skyrocketing food, energy, and housing costs are much to blame for consumer debt, we can’t ignore poor credit card spending habits. Taking control of how you use your credit card is the first step in getting out of debt.... read more »

What is Credit Card Churning & Does it Affect My Credit?

By: John Ulzheimer, 1/16/2024

There is no shortage of strategies to maximize the financial benefit of credit card accounts. Most of them are generally positive in nature, with little to no downside. But one strategy that threatens to damage your credit reports and credit scores, both short and long term, is the so-called credit card churning — and it should be approached with caution. Credit Card Churning is the Pursuit of Signup Bonuses Credit card churning is the process whereby a consumer applies for and... read more »

18 Revealing Credit Card Ownership Statistics (2025)

By: Mike Senecal, 11/15/2023

Credit cards have come a long way from their start in the late 19th century, when stores and hotels began offering metal and celluloid charge cards to stamp account numbers on sales slips. It was a decidedly analog beginning for an industry transitioning from chip and PIN cards, where a metallic chip holds payment data on a plastic card, to virtual cards and global digital payment systems. Nowadays, Americans are so accustomed to using physical and virtual credit and debit cards... read more »

7 Best Credit Cards Reddit Users Recommend (Jan. 2025)

By: Eric Bank, 1/2/2025

Many consumers find the Reddit platform a valuable source of information about credit cards. Reddit’s large community offers diverse opinions on various topics, including how to choose the best credit card for your situation. You can use the subreddit r/CreditCards to add your own comments about credit cards. To compose this list of Reddit’s top recommendations, we’ve combed through many of the site’s posts for advice about credit cards. We also review each recommended card... read more »

3 Best Discover Cards For Beginners (2024)

By: Eric Bank, 1/25/2024

A beginning is a delicate time. So opens Dune, Frank Herbert’s science-fiction masterpiece. What was true of galactic politics remains true of your first credit card. You want to start off on the right foot -- and that foot could be Discover. Discover’s credit cards provide excellent value without charging annual fees. This article reviews the cards it offers that best suit credit newbies. We also review several competing cards that deserve consideration if you’re beginning... read more »

5 Best Credit Cards to Use at Sam’s Club (Jan. 2025)

By: Zina Kumok, 1/2/2025

At a time when grocery prices are still increasing, consumers looking to save money will head to warehouse chains like Sam’s Club to find lower prices than they would at a traditional grocery store. If you already shop at Sam's Club, you know all about these savings — but did you know that using the right credit card can save you even more money? Read below to learn about the best credit cards to use at Sam’s Club, how to sign up, and which one to choose. Best... read more »

Global Entry vs. TSA PreCheck vs. CLEAR: Credit Card Benefit Comparison (2023)

By: Marcie Geffner, 3/6/2023

Airline travel typically involves a lot of waiting in lines. There's a security screening when you leave and, if you're traveling internationally, a customs check-in when you arrive. A prescreening service, such as TSA PreCheck, Global Entry, or CLEAR, may give you access to an expedited security process so you can get to your gate faster. These services can be pricey, but smart travelers who plan ahead can access all the benefits with none of the costs by applying for and using... read more »

Capital One Venture vs. Venture X: Which Wins? (2024)

By: Eric Bank, 8/13/2024

Capital One’s commercials are light-hearted, but the company is deadly serious about attracting new cardholders. This Capital One Venture vs. Venture X showdown reveals how far Capital One will go to gain market share at its competitors’ expense. Its two top travel cards offer excellent value -- your choice hinges on the features you are willing to pay for. Venture X Charges a Higher Annual Fee For More Travel Privileges Though the Capital One Venture X Rewards Credit... read more »

15 Credit Card Tips & Tricks from Experts (2023)

By: Erica Sandberg, 1/10/2023

Using a credit card advantageously is within everybody's capability. You just need to learn the tricks of the trade. There are some strategies you can employ to make sure you are always on top of your account and are using it to your benefit. You can also protect your account against fraud, establish a positive relationship with the issuer, and just make life easier for yourself. If you falter, though, it can cost you both fees and credit damage. The following 15 tips... read more »

9 Best Unsecured Credit Cards For Building Credit

By: Eric Bank, 11/6/2024

Do you toss and turn at night worrying about your lousy credit score? You don't need a better mattress; you need better credit. We hate to see you dragging your sleep-deprived self around in the morning, so we've assembled a list of the best unsecured credit cards for building credit. You can obtain any of these cards without a security deposit (typically $200 or more). The card issuers designed these products for folks with less-than-good credit (i.e., FICO scores below 670).... read more »

Credit Card Ownership By Age, Income, Gender & Race in 2025

By: Erica Sandberg, 12/17/2024

Who are you, and what's your history with credit cards? Well, that information is personal and unique, of course. Each person is different. However, when you start to look at demographic-driven data, some fascinating trends start to emerge. Collected facts and statistics paint a fascinating story about U.S. consumers and their relationship with credit cards. Here are a few of those statistics, including data on how credit card account ownership breaks down age,... read more »

5 Best Secured Credit Cards to Build Credit (2024)

By: Eric Bank, 4/2/2024

It's true that the best secured credit cards to build credit carry some upfront costs. But for folks with bad credit, they are cheaper and generally better than subprime unsecured credit cards. In many respects, secured cards are very similar to unsecured cards. They allow you to charge in-store purchases without carrying around cash or a checkbook. Unlike debit cards, they let you stretch your payments over several months, a helpful feature for big-ticket purchases.... read more »

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All articles tagged Credit Card Usage (108)