Card ownership
Credit cards are the form of credit most people will apply for and use during their lifetime. It's also the form of credit that people often have the most trouble managing.
Information is the key to managing your credit cards well
If you're like most people, you probably haven't read the "fine print" of your credit agreement carefully or at all. Even so, you can still get smart about your credit cards. Once you understand how they work, you'll be ready to take control.
Card ownership When you apply for a credit card, you choose the kind of credit you want:
Individual credit is based on your assets, income and credit history only. You alone are responsible for paying the bills.
Joint credit is based on the assets, income and credit history of both people who apply. Married couples often apply for joint credit. You may obtain more credit this way, but you'll both be responsible for the debt - even if you get divorced. An authorized user is an additional person to whom you give permission to use your account. However, you (and your joint account holder, if any) are solely responsible.
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Fees and Payments
Annual fee Some credit cards may require an annual fee. This is the yearly cost of owning a credit card. The annual fee may be posted to your balance when you open the account and added each year on the anniversary of your account opening.
Late fees Late fees are avoidable and late payments may harm your credit history, which could make it harder for you to get credit in the future. You may be charged a late fee if your payment doesn't reach the card company by the due date. To be sure your payment arrives on time, mail it at least five to seven days before it's due. Many credit card companies offer online payments through your checking account. This option is generally much faster than traditional mail and usually posts to your account within 24 hours.
Other fees
Companies may charge a fee if your balance exceeds your credit limit. You may also be charged fees for returned checks, returned cash advance checks, or stop-payment requests. Most of these fees can be avoided. Call your card issuer if you have any questions about fees.
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