The interest-free period of time a lender gives between the transaction date and billing date, if there is no balance carried over from the previous billing cycle. Generally, the grace period is between 20-30 days. If your card includes a grace period, the issuer must mail your bill at least 14 days before the due date so you have enough time to pay. People who carry a balance on their cards do not receive a grace period and finance charges begin the date a purchase is made with a credit card.

Annual Percentage Rate. A yearly fixed or variable rate that measures the cost of credit. Reflects the total yearly cost of the interest on a loan, expressed as a percentage rate. The credit card company must inform you about the APR before you become obligated on the account and on your account statements. Often the introductory APR is the first thing you see on the credit card offer, either on the envelope or the very top of the first page. Read the back of the offer to be aware that the introductory APR can change. Some credit card companies offer a variable APR that is linked to an index performance. The rate change affects the finance charge on your account. A low fixed rate is usually better that a low variable rate. A fixed rate card must give you 15 days notice of a rate change. A variable rate moves regularly without notification of the rate change.

You can save as much as a thousand dollars or more in lower credit card interest each year by paying off you entire bill each month. If you can't pay off a large balance at once, pay as much as you can and switch to an account with a low APR. Eliminate multiple fees by getting rid of all but 1 or 2 cards and avoid late payment and over-the-credit limit fees.

An authorized user is someone who is added to another person's credit card account and authorized by the principal cardholder to use that account. The authorized user receives a credit card with his name on it and is able to use the credit card as if it were his own. Payment history for that credit card is now reported to both the principal cardholder's credit report as well as the authorized user's credit report, regardless of whether the history is good or bad. That means the authorized user's credit can benefit from the relationship, but it can also suffer if debt accumulates and payments are late or not made at all. Reporting of payments only flows one way, however, and the authorized user's finances outside of the credit card they have in common will not affect the principal cardholder's credit. Liability for all charges to the card, however, lies solely on the shoulders of the principal cardholder. Although damage can be done to the authorized user's credit rating, only the principal cardholder is legally obligated to paying the outstanding debt. Authorized users are most commonly children or a spouse of the principal cardholder.

An APR is the annual percentage rate (the interest rate) you'll pay on the balance you carry on a credit card. There are many different types of APRs, the most common being introductory APRs, fixed APRs, and variable APRs. To learn more about introductory APRs, click here: What is an introductory rate APR? To learn more about fixed and variable APRS, click here: What is the difference between fixed and variable APRs?

An introductory APR rate is a rate given by credit card issuers to new customers for a specified period. This rate is low or often 0% and applies to any combination of purchases, balance transfers, and cash advances, as detailed by the issuer. Introductory rates often have stipulations, and you should always read the Fees, Terms & Conditions provided by the issuer before taking full advantage of the introductory rates. The issuer may review your application and credit history to determine the length of time the introductory rates will apply to you. An introductory rate on balance transfers helps consumers save money by allowing them to transfer balances from high interest credit cards to the card with the introductory rate. Some issuers only offer this rate if you transfer your balance at the time of your application. Often, introductory rates are only valid as long as you pay at least the minimum payment on time. Introductory rates on purchases are applied to any purchases you charge to that card. If the introductory rate is 0%, you do not need to make any minimum payments for as long as the rate is valid. If the introductory rate is more than 0%, then you may need to make at least minimum payments on the card to keep the rate for the specified period. Creditnet.com now features a new section devoted to cards offering introductory interest rates, letting you compare offers side by side. You can find this new section by clicking on the Credit Cards tab above, then on the 0 percent interest link.

What is the difference between a fixed and a variable APR? A fixed APR is an APR that does not change often. Over time, a fixed APR can change due to long-term economic factors, but in this case, your credit card company must notify you of the change before it goes into effect. For example, if your credit card has a fixed APR of 18.24%, that means the APR will remain the same from month to month. A variable APR, however, is an interest rate that is normally tied to another rate, such as the prime rate or Treasury bill rate. If the other rate changes, it is likely your interest rate will change accordingly, whether it be up or down. A variable APR can change from day to day. For instance, if you have a credit card with a variable interest rate, look in your cardholder agreement to see to which interest rate your APR is tied. Your agreement may state that your APR is tied to the prime rate and is equal to "prime + 5.99%". This means anytime the Federal Reserve raises or lowers the prime rate, your card's APR will rise or fall accordingly.

What is the prime rate? The prime rate is an interest rate determined by the Federal Reserve based on a variety of economic factors. Banks use the prime rate as the base factor in determining the interest rate given to their customers. A bank's most creditworthy customers may receive an interest rate equal to the prime rate. Most customers will receive an interest rate on a loan at the prime rate plus anywhere from 1 to 10 percent, depending on their credit rating. Most banks use the prime rate that is published in the Money Rates section in the Wall Street Journal to determine loan interest rates or credit card APRs.

Prepaid debit cards are a good solution for anyone who does not want to be tied down to a banking institution, anyone wanting a more secure way to carry their money, or anyone having troubles being approved for a credit card.

Student credit cards are cards geared specifically toward students to help them establish credit. Credit card issuers know students generally have no credit history and little to no income, so your credit limit will start out somewhere around $300-$1000.