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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.
MORE RESOURCES:
MORE COLLEGE CREDITChicago Sun-Times, United States - 10 hours agoDespite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ... |
Ask, and you might receive a lower credit-card rateSeattle Times, United States - 10 minutes agoPick up the phone, look at the latest credit-card offers and keep repeating this: The bank needs me more than I need it. By Susan Tompor Pick up the phone, ... |
Boston Globe |
US travelers face credit snafuBoston Globe, United States - 8 minutes agoBy Eric Lucas All I wanted to do was buy gas, so I put my credit card in the automatic card-reader and got ready to fill the tank. ... |
Credit - Google News
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