Credit Card Question?

I've done a little research and i've tried to completely understand, but some things arent clicking in, too much business jargon i don't understand.

But i'm a senior in high school and i am probably going to apply for a student credit card from Discovery.

I understand the caution I have to take when applying for one and using them, and I know I will be.

But I wanted to compare my calculations to someone else who knows credit cards well, to make sure i know how to calculate everything right.

So in this card, I see it has a 14.99 apr.

does this mean that it will only charge 14.99 % if i take a year to pay off what i borrowed?

Also what is grace period?

And once you've explained this can you just do an example for me?

like let's say i buy a 500 dollar guitar.

how much would that be once i get my bill?

how often do i get bills?

so much to answer i know, but if you could help i would appreciate immensely.

Here is the credit card info:



Annual Percentage Rate (APR) For Purchases

0.0% until the last day of the billing period ending during August 2009;* then the standard APR, 14.99% variable

Other APRs

Cash Advances: 23.99%

Default Rate: Up to 30.99%*

Variable Rate Information

The standard purchase APR may vary monthly and equals the Prime Rate + 11.74%.鈥?br>
Grace Period for Repayment of the Balance of Purchases

At least 25 days when you pay your balance in full each month

Method of Computing the Balance for Purchases

Average Daily Balance (including new purchases)

Annual Fee

NONE

Minimum Finance Charge

$0.50

Other Fees

CASH ADVANCE TRANSACTION FEE: 3% for each cash advance, with a minimum of $5 and no maximum. LATE FEE: $19 on balances up to $250 and $39 on balances over $250. OVERLIMIT FEE: $15 on balances up to $500, and $39 on balances over $500.

* If you are late making a payment or your account is overlimit twice, we may increase your APRs to a Default Rate. Your Default Rates are determined based on factors such as your current purchase APR, your payment history with us and your general credit history. See Cardmember Agreement for details.



鈥?The Prime Rate used is the highest prime rate listed in The Wall Street Journal on the last business day of the month.



INTRODUCTORY/SPECIAL APR OFFERS: If you are late making a payment or your account is overlimit twice, any introductory/special rates will terminate and the Default Rate will apply.



PAYMENT ALLOCATION: We apply payments to balances with low introductory/special APRs (such as special balance transfer and purchase APRs) prior to balances with standard APRs. Therefore, your savings will be reduced by making additional transactions or having balances with standard APRs. In addition, the length of time the introductory/special APRs will apply to your account may be reduced by the amount of your payments.



APPLICATION INFORMATION: Federal law requires that we obtain certain information about you such as your date of birth and street address in order to verify your identity. You authorize us to obtain a consumer report from consumer reporting agencies in considering this application and for review, renewal, change in credit limit, collection or other legitimate purposes associated with your Account. Upon your request, we will inform you of the name and address of each consumer reporting agency from which we obtained a consumer report relating to you. Offer only available to US residents 18 and older. To apply with a joint applicant, write to us at PO Box 30943, Salt Lake City, UT 84130-0943. Every applicant, including a spouse, may apply for a separate account. THIS OFFER SUPERSEDES ALL PRIOR OFFERS. Terms of this offer, including fees and calculation of variable rates, are accurate as of December 2008 and may change after that date. To find out what may have changed after that date write to us at PO Box 15410, Wilmington, DE 19886-0820. Please allow 30 days for us to process your application.



Offer valid for new cardmembers only.



CARDMEMBER AGREEMENT: You agree to be bound by the terms of the Cardmember Agreement, which will be sent with the card. You also agree that the Cardmember Agreement and the account are governed by Delaware and federal law. The terms and conditions of your account, including rates and fees, are subject to change.



ARBITRATION: The Cardmember Agreement provides that we may choose to resolve a claim relating to your account by binding arbitration, in which case, you will not have the right to have that claim resolved by a judge or jury and you will not have the right to participate in a class action in court or arbitration. You may reject the arbitration provision with respect to your new account within 30 days after receiving your card. For restrictions and details, write to us at PO Box 15192, Wilmington, DE 19886-1020.



OHIO RESIDENTS: Ohio laws against discrimination require that all creditors make credit equally available to all creditworthy customers, and that credit reporti
Credit Card Question?
Gar -



Credit cards are billed monthly and your billing cycle depends on when the card is opened. The interest and fees you will pay can't be answered precisely, because the APR, in particular, does not depend solely on your behavior on that particular credit card: it can be impacted by other behaviors that show up on your credit report, such as timely payment of your rent or financial aid bills. That might seem unfair, but credit card companies try to protect themselves from you %26quot;going bad%26quot; by attempting to predict the likelihood that you will pay your bill. If they see other behaviors start to %26quot;go bad%26quot; on your credit report, the credit card company might raise your APR so that it can get more money in, faster.



A credit card company can also decrease your credit line or cancel the card altogether should it decide to do so.



The bottom line is that there are a lot of fees that can go along with a credit card, and the card agreement text you copied into your question says that the card's default rate can go as high as 30.99% so if it were me, I would assume that my APR might go as high as that level.



Hope this helps!



Stephanie Fierman



http://www.stephaniefiermanmarketingdail鈥?/a>

http://www.stephaniefierman.com