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.
Identity thieves take advantage of everyday opportunities to discover your... Read More
What are inquiries?When you apply for credit the creditor or... Read More
Establishing credit and wisely managing your credit becomes easier when... Read More
Credit cards have both benefits and drawbacks. It is wise... Read More
A credit report is more than just a snapshot of... Read More
Keep Your Credit History Clean - Remove A Negative Credit... Read More
The average American knows very little about bankruptcy. Most people... Read More
These days, credit cards in the UK are competing with... Read More
Having a credit card is a wonderful convenience for those... Read More
Credit has become a much-used word, thanks to the various... Read More
If you're like the average person, let me warn you... Read More
Credit cards can be a very quick way of getting... Read More
If you opened a credit card statement recently and were... Read More
In their quest to get you to sign up for... Read More
There are a whole variety of different types of credit... Read More
Identity theft is a growing concern among Americans, and rates... Read More
What you might not know about credit.Some people don't know... Read More
If you begin foaming at the mouth once a month... Read More
One of the great mysteries of life is how the... Read More
When you are deciding what type of credit card to... Read More
The nightmare of identity theft strikes an estimated 750,000 people... Read More
There are many of us that have been badly stung... Read More
As you probably know, interest rates are at all time... Read More
Get your credit report online for FREE. Many financial advisors... Read More
As I am not from the US, I had no... Read More
Debt negotiation on credit cards is often referred to as... Read More
Thanks to the Fair and Accurate Credit Act, American consumers... Read More
Building a good credit history is important. If you have... Read More
Martin Henderson is in a fix these days. Because of... Read More
Identity theft is the fastest growing crime according to the... Read More
Credit score is the key factor determining approval of almost... Read More
It is wise for you to have a company credit... Read More
Reach into your wallet or purse, pull out a card,... Read More
Bewildered by the sheer variety of debit cards and credit... Read More
A lot of credit score myths about fico score ratings... Read More
You can still save money on a Bad Credit Loan... Read More
The next time you open your credit card statement, take... Read More
For years, major credit card companies have allowed cardholders to... Read More
Credit Cards can bankrupt you if you let them run... Read More
What is a balance transfer?A balance transfer can be explained... Read More
There are many misconceptions about credit scores out there. There... Read More
With prepaid credit cards, you get the practicality of plastic... Read More
If you are married, establish separate credit accounts.Try to finance... Read More
Your credit score may just be a little number, but... Read More
So you ordered a copy of your credit report to... Read More
Credit repair, is in a word, vital to reestablishing your... Read More
Credit card balance transfer involves using a credit... Read More
Credit counseling companies come in all shapes and sizes. Whether... Read More
Once you've been paying off a credit card for a... Read More
In 2003, Congress passed the Fair and Accurate Credit Transactions... Read More
In this week's article, I am going to offer some... Read More
Credit needed for real estate mortgage financing differs from credit... Read More
Identity theft is the fastest growing crime in America. According... Read More
If you have a bad credit rating, then you might... Read More
How can I prevent Identity theft from happening to me?... Read More
One of the great mysteries of life is how the... Read More
Step I - Selecting A Collection AgencySelecting a credit collection... Read More
What FACTA means is that if you, as an individual,... Read More
Getting an annual credit report review has been the advice... Read More
Are Credit Card companies starting to feel the pinch? We... Read More
In the new millennium plastic money or credit cards has... Read More
Martin Henderson is in a fix these days. Because of... Read More
Credit score is the key factor determining approval of almost... Read More
Your credit score can either haunt you or reward you.... Read More
And some practical advice too!My first credit card?I remember my... Read More
Do you know what your credit card is truly costing... Read More
Credit |