Education In The World

Personal Finance Basics – Do You Know What APR Means?

Have you looked at the ads for credit cards? If you have with even minimal attention you will know that one of the most prominent things they display is the APR, or the credit card rate. Lots of people simply choose the card with the lowest APR rate, which is a good first step. It is correct that the APR of your credit card is one of the most important factors you should consider when choosing your card (although it is not the only one). So, if you do not understand the APR you really should start improving your personal finance basics by gaining a proper understanding of them.
The APR on your credit card is the rate if interest your supplier will charge you on the amount you owe them. So obviously, the lower the APR, the lower your payments, unless you pay off your card in full each month. If you do clear your card monthly, the APR will not be as important as it is to those who do not clear their cards each month.
Each month your card supplier will send you a bill stating the full amount you owe them and the minimum payment you must pay by the due date. If you do not meet this date you will be charged a late fee and perhaps other penalties depending on the terms and conditions of your supplier.
So you can pay the minimum amount specified, or the whole amount, or any amount in between. The important thing to understand is you will NOT be charged any interest if you make full payment.
But, if you do not pay off the whole amount, you will pay interest charges on the amount left. This interest will be added to your next bill. The interest you will be charged is that you agreed to when you signed up for your card. And compared to, say, a bank loan, the interest, or APR, is very high.
So it is possible to start a spiral of debt in this way if you do not know how these things work. Always borrowing on your card without paying it off each month will accrue high interest charges which you will have to pay eventually.
Do not misunderstand me here. I am not saying you should never use your card if you cannot pay it off in full at the end on the month. I am saying your personal finance basics should be good enough to inform you when you can do this and when you should look for another source of funds.

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Personal Finance Knowledge – How to Get a Copy of Your Credit Report

Your personal finance knowledge should encompass the idea of you knowing what your credit score is. Do not simply go on as normal, to find out too late that you are not eligible for that loan you so desperately need. It is important you know this before you even apply for a loan.
But, if you look around, you will find a number of companies that will sell you a copy of your credit report and credit score. These are useful, but what if you cannot really afford the fees for this information?
There are free reports available for you to access. Typically they do not give you the full information package of a paid report, but they can still be very useful as a starting point.
Each site has their own terms and conditions for them giving you the free report. Make sure you know these terms and conditions thoroughly before you apply. Some, perhaps most firms, will use the offer of a free report to get you on their database. Once they do they can try and sell you their services forever.
There are marketers who will target desperate people in order to obtain their money and then only offer a mediocre service at best. If you spend money, make sure you know exactly what you want and that you will get it.
Not everyone is like this, but you do not know which is which, so act accordingly. Only buy stuff you need and will use. And only but from reputable firms or organizations that have a comprehensive and believable complaints policy and money back guarantee.
One thing you can do right now is go to and check them out. Did you notice the https at the start? Most sites start with http. The additional ‘s’ means that the site has additional encryption security for your online security.
This site can let you have a free credit report but there are limitations. It is up to you to check out the terms and conditions and decide for yourself. Going to sites like this and accessing the free data about your financial position is one of the first steps to increasing your personal finance knowledge.