 |
 |
MyUNIverse | WebCT | Calendar | A-Z Index | E-Mail | Contact UNI | UNIdirectory | UNIsearch | |
| Financial Aid | |||
| Applying for Financial Aid | Paying for College | Managing Your Money |
Features: •Important financial tool that allows one to buy now and pay later •Convenient way to carry money •Good way to pay for large purchases over time •Provides financial support in an emergency •Helps build credit history •Assist in managing money The person holding the credit card account in his/her name is responsible for the monthly payments, even if there is another authorized user on the account. Credit Limit is the maximum balance you can carry on your account. In other words, that is the amount you are eligible to borrow using the card. This gives you added safety margin in case of a financial emergency. Credit limit may be gradually increased if you continue paying your bills on time. Keep track of your balance as well as your credit limit. This is the maximum amount you can borrow, but does not necessarily mean that you have to borrow that much every period. Set a personal borrowing limit that you do not exceed. How does a credit card work? 1. You use your credit card to make a purchase. 2. The merchant sends a copy of your signed receipt to the clearinghouse or the card company. Online or telephone purchases authorize the merchant to complete the transaction without your signature. 3. The clearinghouse or the card company pays the merchant. 4. Your purchase amount is added to the balance on your account. 5. The credit card company sends you the statement with the list of purchases and payments made, if any. Some credit cards require an annual fee as the yearly cost to you for owning the card. It is posted to the opening balance and added annually. For payments received after the due date, late fees will be charged. If you exceed the credit limit, over-the-credit-line fee will appear on your statement. Balance is the total amount (carried over balances, current purchases, cash advances, finance charges on balances and fees) that you owe on your account. The amount of credit available to you, which is the difference between your credit limit and your current balance, is your available credit. The 20-30 day period during which if you pay the total balance on your account, no interest will accrue on the purchases made during the next billing cycle is the grace period. There is no grace period for cash advances. Annual Percentage rate (APR) is the annual interest rate applicable on balances carried on. APR could be fixed which mostly remains constant, or variable that could change over time. When a payment is made, interest is covered before any amount pays the balance. Making payments: Full payment - Best way to avoid interest charge purchases is paying the total balance each month. Partial payment - Convenient way to repay big purchases over time by factoring it over months. Interest will accrue on the amount due. Developing a regular paying pattern - Paying bills every month is a good pattern as the information about how to pay your bill is sent to credit bureaus every month. A bad mark appears for any failure of payment. Minimum monthly payment - The minimum amount to be paid to keep your account current, NOT the recommended payment amount. Cash Advance is a cash withdrawal from your credit line with finance charges accruing immediately. The rate may be the same as the APR, or may be higher. Cash advance fees apply as well. Cash advances are handy in cases of emergency but must be viewed as another source of debt. Credit card behavior is reflected in your credit history. A good credit history for students can get them approved for car loans, renting apartments, and other different types of credit in the future. Using credit creates credit history. The record of credit history is the credit report. Credit card companies, financial firms, college loans authorities, insurance companies, landlords, and prospective employers have access to your credit report. Companies compiling your credit history to create credit reports are credit bureaus. Below is the contact information for some national credit bureaus.
|