Later, you pay the cash to the credit card company. Figuring out what they cost you, though, can get quite convoluted. The Annual Fee Many card companies charge you an annual fee. In return for that fee, you get to use the card. You may also get rewards, ranging from travel insurance and coverage on rental cars to airline points and even concert tickets.
All credit cards have an annual interest rate.
You'll find it listed in the disclosure box that credit card companies are required by law to include in their solicitations, as well as monthly statements. If you pay your bill in full by the due date listed on your statement each month, you don't need to concern yourself with this. If you don't pay off your balance, those interest rates really matter to you. While it's somewhat confusing, it's important to understand when you start getting charged interest and on what sum, in order to minimize your charges. That means understanding grace periods .