How Do Credit Cards Work?

Release Date: 
November 19, 2020
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Next Advisor, How Do Credit Cards Work?

"'There is lots of money to be made by the credit card companies by charging this interest,' says Ira Rheingold, executive director with the National Association of Consumer Advocates. 'Using a credit card is essentially getting a loan from the bank,' he says. It’s sort of a short-term loan, and you can pay for it in two ways, he says: fees and interest charges."