It shouldn't be taken lightly, but that doesn't mean you shouldn't ever use credit. Just follow our advice, keep the basic facts of credit in mind, do your research, and you'll be fine. Unfortunately, each one depends on the other to determine just how much money is on your card. The credit card company looks at how much has been charged to your card, then multiplies that by whatever your interest rate might be. The secret of credit card interest is to find the card with the lowest possible fixed rate.
Interest rates go up and down depending on many different factors.
If you have a fixed rate, they can't. This means that you'll have a nice, safe rate for the first year, then the company will jack it up to a rate Bill Gates himself wouldn't want. It's not a good deal, so make sure you read the fine print before you choose any credit card. Check around for student credit cards, which will often give teenagers better service and a lot of cool benefits. Now, let's check out how those credit companies calculate interest.