They are lending you the money. They bill you at the end of the month, and then you usually have another month to pay it. So you get a bill June 2 for all charges you made in May, and you have to pay them by July 2 (or whatever). PAY THIS IN FULL. Don't pay the stupid minimum, and you won't get charged any interest. (Paying the minimum will get you in a lot of trouble very fast)

I have mine scheduled to be paid about two weeks before the due date, that way if there are any problems, I can fix them before I'm late on the payment.

HTH.

Anonymous wrote:

Anonymous wrote:I recommend setting up an automatic payment, in full, every month from your bank account.

That may be the best approach if you travel a lot or otherwise have trouble paying your bill on time, but I think it's a lot better to look through your credit card bills before scheduling payment. (I do have electronic reminders that I need to pay, so I get wanting to be on autopilot a little.)

I agree with this. It's best to think of the card as merely a convenience. Never spend more on it than you would from your own checking account, and pay off the balance completely every month. Interest fees are a ripoff.

You also enjoy some level of protection with a credit card - if someone uses your card fraudulently you will usually not be responsible for the amount they spent. I bought a computer yesterday and I had to confirm that it was me making the purchase before they would let the charge go through. A small inconvenience, but it's great to know they're looking out for me.

I had a Chase card for years and it was fine, but my husband urged me to get a card that earns rewards, so now I use a Capital One card, and will eventually use the points to buy things I want or need (like airfare or things for our kid).

Anonymous wrote:I recommend setting up an automatic payment, in full, every month from your bank account.

That may be the best approach if you travel a lot or otherwise have trouble paying your bill on time, but I think it's a lot better to look through your credit card bills before scheduling payment. (I do have electronic reminders that I need to pay, so I get wanting to be on autopilot a little.)

I recommend setting up an automatic payment, in full, every month from your bank account.