Useful Tips When Choosing Credit Cards

Chances are you have received your share of "pre-approved" credit card offers in the mail, some with low introductory rates and other perks. Many of these solicitations urge you to accept "before the offer expires." Before you accept, shop around to get the best deal.

Credit Card Terms:

A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it's wise to compare terms and fees before you agree to open a credit or charge card account. The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application.

Annual Percentage Rate: The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements. Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators - called indexes - change. Because the rate change is linked to the index's performance, these plans are called "variable rate" programs.

Free Period: Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you'll have enough time to pay.

Annual Fees: Most issuers charge annual membership or participation fees. Transaction Fees and Other Charges: A card may include other costs. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.

Other Costs and Features:

Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. If you expect to pay your bills in full each month, the annual fee and other charges may be more important than the periodic rate and the APR, if there is a grace period for purchases. However, if you use the cash advance feature, many cards do not permit a grace period for the amounts due - even if they have a grace period for purchases. So, it may still be wise to consider the APR and balance computation method. Also, if you plan to pay for purchases over time, the APR and the balance computation method are definitely major considerations.

You'll probably also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan's services and features.

Useful Tips:

Keep these tips in mind when looking for or using a credit or charge card.

? Shop around for the plan that best fits your needs.

? Make sure you understand a plan's terms before you accept the card.

? Hold on to receipts to reconcile charges when your bill arrives.

? Protect your cards and account numbers to prevent unauthorized use.

? Draw a line through blank spaces on charge slips so the amount can't be changed.

? Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates and the phone numbers of each issuer to report a loss quickly.

? Carry only the cards you think you'll use.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

The Hitchhiker?s Guide To Insanity

A new sickness is plaguing the UK called Denial. Denial... Read More

Free Credit Report ? Watch Out for Scams

Many people may still not be aware of an amendment... Read More

Beginners Guide to Credit

I remember back when I was 18 and completely oblivious... Read More

ChexSystems: Alternative Options for People Whove Been Checking Accounts

Individual banks elect to become members of ChexSystems, and to... Read More

Dealing With A Collection Agency

Step I - Selecting A Collection AgencySelecting a credit collection... Read More

Trade Credit: How to Determine if You Should Offer Net-30 Terms to Your Customers

What is trade credit?One of the major differences between consumer... Read More

Credit Report And Correction Techniques

The three major credit bureaus, Experian, Equifax and Trans Union... Read More

Taking Control of Your Credit History

Your credit history is important; in fact, in this day... Read More

Consumer Credit Reports

A consumer credit report is a factual record of an... Read More

The Truth About Credit

What you might not know about credit.Some people don't know... Read More

Defeating Credit Card Debt With Self Control

Credit card debt is a major social problem in some... Read More

What Does Your Credit Score Tell You?

When you apply for a loan or a mortgage, the... Read More

What is a Credit Card?

A credit card allows you to buy things even though... Read More

Some Truth About Credit

Credit is currently and has been historically an integral component... Read More

Credit Repair Companies and Credit Counseling

Let's be crystal clear, right up front. Paying someone to... Read More

What Does Your Credit Say About You?

A credit report is more than just a snapshot of... Read More

How Your Credit Rating Affects You, and How to Check It

You might not know it, but every time you take... Read More

Beware of Falling Minimum Payments

If you opened a credit card statement recently and were... Read More

The Credit Card Surprise That You Need to Look Out For

Companies that issue credit cards want to make a profit.... Read More

Maximizing Credit Card Rewards

We spend money every single day on many different types... Read More

5 Killer Steps to avoid Credit Card SCAMS!

In August, 2004, the Federal Trade Commission issued their findings... Read More

Triple AAA in 30 Days

Have you ever wonder about how to get good credit... Read More

Fun with Credit Cards

For those of us who know how to use them... Read More

What Are the Most Common Ways to Commit Identity Theft or Fraud?

It's the number one source of consumer complaints at the... Read More

SuperCharged Secret 2, Credit Card Utopia

INTEREST BEWARE, THERE'S SAFETY IN NUMBERS!Note: The following is part... Read More

Credit Reports Inside and Out

The Credit Report is like your scorecard in the lending... Read More

Credit Card Balance Transfers Explained

What is a balance transfer ? A balance transfer can... Read More

Improving Your Credit Report

Even if you think you have a wonderful credit report,... Read More

Types of Credit Cards

There are a whole variety of different types of credit... Read More

Identity Theft - Dont Think You Are Immune

As identity theft becomes more prevalent, the need to regularly... Read More

Important Things to Know About Divorce and Credit

Joint debts remain joint debts.Both spouses signed a legally binding... Read More

Borrowing on a Credit Card

One of the easiest ways to borrow money of a... Read More

Check Your Credit Before Shopping For That Home Loan

Review Your Credit Score.Nearly every bank, credit union, and mortgage... Read More