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Most consumers prize their credit cards as purchasing power in the form of portable plastic. But many overlook the consequences of misusing their cards until the threat – or confirmation – of debt sinks in. Understanding how credit cards work is critical for being a responsible consumer. Credit cards use a system of borrowing that involves interest charges. A consumer making purchases with his or her card receives monthly statements that specify the amount owed. The cardholder must pay at least the minimum billing amount that is determined by the card issuer; interest charges are usually waived if the bill is paid in its entirety each month. The cardholder also has the right to dispute billing and charging errors.[...]

Source:Credit Cards

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