How exactly does a credit card work?

I’m currently a married college student trying to decide on which credit card to sign up for. I am mainly searching for a cash back card or useful rewards back. I have a Victoria’s Secret store credit card along with a Walmart store credit card. Does Chase Visa work the exact same ways as these? I always pay my balance in full and these are full balances like 500.00 not just 30.00 total month purchases. I have a credit score ranging from 714-724

I’m just looking for a straight to the point answer to understand how APR works and if I actually have to worry about it since I pay cards off in full since the past 5 years.

Thanks !

One thought on “How exactly does a credit card work?

  1. Hi! Yes, you are right. Visa, MasterCard, Discover and American Express works just like the store cards. If you pay it in full (not just the minimum payment) there is no interest charged. Some credit cards have annual fees, some have reward programs, and all of them have APR. There may be ones that offer 0% APR for a promotional period. APR means Annual Percentage Rate, Annual is the whole year, and the percentage is the percent on the balance they will charge the full year if paid in payments. You can find the month interest by completing the equation: (Balance) * (0.APR)/12 = Monthly interest. You have to put APR in decimal form, for each 15% becomes 0.15. Then you divide that by 12, and times the result by the balance.

    You can read more about credit on, and credit card offers at and I wish you the best.

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