How does the credit card work?does the bank give you like a loan?

In a sense, yes.

you charge things and have 30-days to pay for them in full. If you do this, you never pay interest and build a great credit score over time.

If on the other hand you do not pay them in full before the due date, you will be charged interest.

Credit cards are great as long as you are responsible with them.

I would suggest never exceeding 30% of your credit limit in any given month and pay them in full before the due date.

This will do two things. First it will establish a payment history and second it will keep your debt to credit ratio low.

These two things alone make up 65% of your credit score.

I have done this with 2 credit cards for the last couple of years and have raised my score over 150-points.

O.B.T.W. I have looked at credit every day for over 7-years and have never seen %26quot;the highest you can get%26quot;, which is 850.

How does the credit card work?does the bank give you like a loan?

Basically.

How does the credit card work?does the bank give you like a loan?

don't do it man. it is a loan at like 20%, and much easier to get and spend.

How does the credit card work?does the bank give you like a loan?

I'm posting this to warn

you and others on yahoo! abt Loan scams.

Beware of Advance fee Loan scams.

LOAN SCAM - Do Not Pay UpFront Fees.

Do not send money UpFront via Western Union or MoneyGram to any person

or business in the UK, Nigeria or Canada in hopes of getting a loan. If

you do you will learn a hard lesson %26amp; never see any Loan money.

How does the credit card work?does the bank give you like a loan?

It appears you are getting more advice on what to watch out for than constructive advice on how to handle credit. You are correct, the bank actually gives you a 30 day loan. You buy stuff and charge it to the card. You have the right to repay the full amount at the end of the month with no finance charge. If you do this consistently (pay off the debt in full), you will build good credit and never pay any fees.

If, on the other hand, you get careless and carefree, and charge more than you can pay back, then you basically are taking out a loan at a high interest rate.

The card can be a good thing if you are a financially responsible individual.

Hope this helps.