Credit Cards Articles
How card interest, grace periods, balance transfers and credit scores actually work, with the arithmetic shown.
How Credit Card Interest Is Actually Calculated
Your card does not charge you once a month at the APR on the front of the statement. It charges you daily, on a balance that moves every day. Here is the arithmetic.
The Credit Card Grace Period, and How People Lose It
The grace period is the reason a credit card can cost nothing to use. It is also easy to lose without noticing, and getting it back takes longer than most people expect.
What Actually Affects Your Credit Score
There is no single credit score, and the percentage breakdowns you see quoted everywhere are not published by the regulators. Here is what the CFPB actually says.
How Balance Transfers Actually Work, Fee Included
A 0% balance transfer is not free money. There is a fee charged up front and a deadline that decides whether the whole exercise saved you anything.
Avalanche vs Snowball: We Ran the Numbers, and the Gap Is Smaller Than You Think
One method is mathematically optimal and the other is easier to stick with. Here is what the difference is actually worth in dollars, which turns out to be less than the argument suggests.
Credit Utilisation, and Why the 30% Rule Is Folklore
Utilisation is one of the largest factors in your credit score, and almost everything commonly said about the 30% threshold is made up. Here is what the mechanism actually is.