Even if you use a credit card all the time, it can be difficult to understand the ins and outs of how they work. Whether you're a new credit card owner or just want to make sure you're getting the most out of your card, this episode will walk through the fundamentals of the credit card game. Learn more about sponsor message choices: podcastchoices.com/adchoices NPR Privacy Policy
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You're listening to lifekit from NPR.
Hey, everybody, it's Marielle.
I saw this meme one time that said, how is it that we were born onto a planet that has everything we need to survive?
And I ended up with a credit score?
Fair point, right?
What we're about to get into credit cards and credit scores, it feels overly complicated, and it also feels like a game, one that you might rather not play.
But since this is our reality, we kind of have to play the game.
And if you're gonna play, you might as well win.
Here's what I mean.
When you open up a credit card, the issuer is agreeing to lend you money.
It's also giving you benefits like cash rewards, discounts, reimbursements.
Credit card issuers do this because on the whole, they're making money on fees from merchants, but also on interest and late fees from you.
They're not making money on every single customer at scale, they're making money.
But you can be kind of the aberration that makes money for yourself.
That's John Kiernan, the managing editor at the personal finance website wallethub.
On this episode of Life Kit, we are going to walk through the fundamentals of the credit card game.
We'll talk about how credit cards work, specifically how interest accrues, and we'll also break down a credit card statement, talk about what's the difference between the minimum payment, the statement balance, the account balance, and this episode is great for anyone who's new to credit cards.