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Credit cards, if well used, can help to build a good credit score. But if one does not understand the working of a credit card, it is very easy to slip to the bad credit zone, and accumulate debts that are difficult to pay off. Master Card is one of the major credit card companies, and applying for a master card has its own benefits and safety. It is one of the most widely accepted cards in the world, and is easier to deal with, if the card is lost or stolen. The company has all its security measures in place, to avoid customers falling victims of identity thefts.

To understand master cards, understanding a few important concepts of credit cards is important. APR or the Annual Percentage Rate, is the rate of interest applied to the total balance due, if the bill is not paid on time. Any new purchase made while the previous balance is due can also be charged an interest rate. APRs can either be variable according to the total balance due, or fixed.

Grace period is the time period the credit card companies allow its customers to clear off the balance due. During this period, any new purchase made will not be charged any interest. Usually it will be 20 days to a month in most credit card companies. Having this grace period is important, as it allows a time to clear off the debts without having to pay the interest rates.

Credit limit is the total credit approved for a customer. Based on the credit scores, the credit card companies set a maximum amount that can be charged on the card. Credit limit can change over time as the credit rate improves. Over the limit is a term used, when the customers exceed the maximum amount that can be charged on their cards. The interest rates and the fines applied to over the limit are very high in all leading credit cards including master cards. Outstanding balance is the total amount that a customer has to pay back the credit card, at the end of every billing cycle.

Cash advances can also be drawn from credit cards, but they are usually associated with a transaction fees and higher interest rates than the credit card itself. It is advisable to read through the small prints carefully, for any transaction fees, processing fees and other conditions that are applied, before closing the deal on any master card.