Answers to Your Top Credit Questions

If you've ever applied for a job, rented an apartment, bought or leased a car, opened a bank account, applied for a mortgage or been issued a credit card, you've participated in the world of credit. At Credit.com, we believe credit can be a positive force in every aspect of your life. To put this power to work for you, however, it's essential that you understand your own credit - and what your credit information says about you to the growing number of companies that use credit information to make life impacting decisions about you. These companies include lenders, insurance companies, employers and utility companies. Credit 101 is a series of articles covering the fundamentals of credit. The objective is to help you better understand and, therefore, leverage your credit history in order to get the most out of this essential force throughout your life. The fact is that each of us has a relationship - good or bad - with our credit. Our hope is that these articles will assist you in improving that relationship - and, in the end, make credit your friend and ally.

How Consumer Credit Works: How to Avoid Mistakes and How to Manage It Well

An introduction to the basics of the credit system.

When it comes to the world of credit cards, you're a complete newbie. You've never applied for a card before and you're not sure where or how to land a good deal. This guide will help you get started.

Is high-interest credit card debt weighing you down? Consider a balance transfer. By transferring your balance to a card with a low interest rate, you'll get a nice reprieve from the heavy finance charges you've been paying. With such super-low finance charges, more of each payment gets applied to your outstanding balance so you can make some real headway in paying down your debt. How good are the deals? Some credit card issuers are offering balance transfer offers as low as zero percent for as long as one year. To make the most of a balance transfer offer, you'll need to make a few savvy moves. To maximize your savings, minimize fees, and avoid costly mistakes, be sure to follow these tips:

Whether your business has been up and running for years or you're just thinking about setting up a shop of your own, figuring out what credit cards to have - and using them wisely - are crucial for your long-term success. This is a good time to be shopping for business cards. Credit card issuers are devoting a lot of attention to small business owners these days and are coming out with very tempting offerings - especially for folks with very good to excellent credit. How would you like an introductory rate of 0% for a year on new purchases and balance transfers? If you have an excellent credit score, it could be yours!

Did you slip up and pay your credit card bill a little bit late? Get ready for some serious penalties. Late fees and penalty interest rates, which many issuers apply to your account after a single late payment, are climbing higher and higher. From 1995 to 2007, the average credit card late fee more than doubled from $13 to $28, according to a survey by Consumer-Action, a non-profit education and advocacy organization based in San Francisco. With some issuers charging credit card late fees as high as $39 and penalty interest rates as high as 32 percent, it's never been more expensive to pay late with a credit card. So do your wallet a favor and get in the habit of paying your credit card bills on time every time. These tips will show you how.

For years bankers have envisioned a cashless society. We may not be there yet, but we are moving in that direction. Between debit and credit cards and online ways to move money such as PayPal, we're carrying fewer greenbacks in our wallets. When it comes to paying with plastic, though, there are heated debates about which is better - debit or credit. Some experts, like Dave Ramsey, think credit cards are too great a temptation and warn consumers to stick with debit cards only when they need them. Others, such as the Privacy Rights Clearinghouse, advise shoppers to "dump their debit cards." In this article, we'll give you the pros and cons of each so you can make up your own mind.

Paying by credit card sure is convenient. Just hand the card to a merchant, sign the receipt, and walk away with your newly purchased item. A couple of days later, the charge shows up on your credit card bill and you pay the bill when it's due.