1.1 Overview of Credit Cards

Credit Card is different from Debit Card (Check Card). You don’t have a penny in your credit card account. In other words, you just spend Bank money does its own thing and can also be equated with short-term loans. But unlike a loan, once you take out a loan, your repayment date is fixed, and you must pay interest. With credit cards, as long as you pay off the money within a certain period of time (usually one month), those with higher The horrifying interest rates (general credit card APRs are as high as 20%) can be ignored. Therefore, you can also think of credit cards as short-term interest-free loans.

1.2 Classification of Credit Cards

The credit system in the United States is perfect, and there are many types of credit cards. Here we only introduce the two most closely related to F1. By the way, I will also introduce the credit cards that everyone has heard of more. Debit Card. 1.2.1 Debit Card

Also called Check Card, it is very similar to domestic credit cards. Generally, you can apply for such a card when you open a Checking Account at the bank. It is equivalent to spending your own money, and there is no other benefit besides convenience. You need to set a PIN code, which you need to enter whether you withdraw money from an ATM or spend money in most commercial places. Generally, when you go to the United States and open a bank account, you have to get one. Anyway, it’s free of charge.

1.2.2 Secured Credit Card

Similar to Debit Card, you need to pay a certain deposit to the bank to apply for this card, and your Credit Line is the deposit you paid. Generally provided to people who have no credit history but want to use a credit card to obtain a credit record and have lived in the United States for a long time. Generally, after 6 months of use, if the credit record is good, the card has been used for 6 months, and repayments are made on time without default. At the same time, if other conditions of the bank are met, it can be converted into an Unsecured Credit Card and the deposit will be refunded at the same time.

1.2.3 Unsecured Credit Card

No deposit, normal credit card. It is also the most commonly used credit card among Americans. Applying for this card generally requires a certain credit history.

There are also student credit cards issued specifically for students. Since I have never applied for such a credit card, I will not comment on them. I will only introduce the card types for the general public. 1.3 Credit card terms

Generally important credit card terms include 1.3.1 Annul Fee

Annual fee. As the name suggests, it is the credit card usage fee paid to the bank every year. Each bank is not necessarily the same, but for UCC, most of them have no annual fee. However, for credit cards issued by some special institutions (such as credit cards issued by United Airlines), the annual fee may be waived in the first year, but then there will be no annual fee. There is an annual fee.

1.3.2 Available Credit Line

The credit line indicates the maximum amount of money you can borrow from the bank. For SCC, the credit limit is the deposit you pay to the bank. For UCC, the bank evaluates your credit limit based on your income level and expenditure level. Generally, don’t exceed this limit when swiping your card, otherwise it will have a great impact on your credit.

1.3.3 APR According to the results I asked Wells Fargo staff, APR seems to be understood as