How do credit cards work? can i use them next throw them away after i'm done? my friends do this?

It isn't solid advice to describe someone to use it once and throw it away, one of the keys to establishing correct credit is to build a credit history. Having two major credit cards (not store cards) open out really helps race out especially if its open for various years and has be paid on the dot with a low go together.

have your friends ever hear of jails -- too bleak they did away with debtor prisons. on the other i guess they did the right item, because the state of texas would not hold all the total jerk that do not properly use credit cards.

Answers:
Oh dear...

A user is issued credit after an account have been approved by the credit provider, and is given a credit card, next to which the user will be able to generate purchases from merchants accepting that credit card up to a pre-established credit limit. Often a broad bank issues the credit.
When a purchase is made, the credit card user agrees to salary the card issuer. The cardholder indicates their consent to pay, by signing a tally with a narrative of the card details and indicating the amount to be paid or by entering a Personal credentials number (PIN). Also, many merchants immediately accept vocal authorizations via telephone and electronic authorization using the Internet, specified as a Card not present (CNP) transaction.

Electronic validation systems allow merchants to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase contained by a few seconds, allowing the confirmation to happen at time of purchase. The validation is performed using a credit card stipend terminal or Point of Sale (POS) system with a communications join to the merchant's acquiring ridge. Data from the card is obtained from a fascinating stripe or chip on the card; the latter system is in the United Kingdom commonly set as Chip and PIN, but is more technically an EMV card.

Other variations of substantiation systems are used by eCommerce merchants to determine if the user's account is valid and competent to accept the charge. These will typically involve the cardholder providing other information, such as the security code printed on the pay for of the card, or the address of the cardholder.

Each month, the credit card user is sent a statement indicating the purchases undertaken next to the card, any outstanding fees, and the total amount owed. After receiving the statement, the cardholder may dispute any charges that he or she think are incorrect (see Fair Credit Billing Act for details of the US regulations). Otherwise, the cardholder must pay a defined minimum proportion of the bill by a due date, or may choose to money a higher amount up to the entire amount owed. The credit provider charges interest on the amount owed (typically at a much complex rate than most other forms of debt). Some financial institutions can arrange for automatic payments to be deducted from the user's guard accounts.

Credit card issuers usually waive interest charges if the balance is compensated in full respectively month, but typically will charge full interest on the entire outstanding balance from the date of respectively purchase if the total balance is not compensated.

I really doubt your friends do this unless they are scammers/identity thieve. Is it possible they are using pre-paid gift cards that look close to and are used just resembling credit cards?? Look up the meaning of credit surrounded by the dictionary.

You can if you pay your bill. If you dont remuneration your credit will be bad, and you wont know how to get any loans contained by the future.

Your friends might have bequest cards from the mall similar to Simon malls. They have a Visa logo and are contribution cards you can use anywhere --- not just the shopping arcade.

THESE ARE NOT "CREDIT CARDS". they are gift cards that look approaching credit cards.

You do not want to just use and throw away your 'credit cards' if this is truly what you enjoy.

http://creditcard.creditinspector.info... has excellent info related to dealing beside credit cards. Check it out!