Credit Card Round-up
Credit Cards… What matters to you
When credit card offers seem too good to be true, they often are. For example, if you receive an offer with a zero percent interest rate and no payments for 18 months or a 90-day-same-as-cash deal, it is essential to read the fine print. The fine print discloses important information regarding the card agreement, such as the required minimum monthly payment, payment due date, late fees, over-the-limit fees, default clauses and other consumer obligations to the credit card issuer. In other words, look before you leap!
Before applying for a credit card, here are several factors that may help determine if a credit card is right for you.
Interest rates matter. Fixed-rate cards may seem appealing on the surface, but may change upon a 30-day written notice from the card issuer. This information is usually stated in the fine print of the disclosure in the cardholder agreement.
Introductory or “teaser rates” entice consumers to apply for cards with temporary features. Before you activate and use a newly approved card, be sure you know how long you really have the low introductory rate. You may find it helpful to know if the introductory rate applies to new purchases, balance transfers and/or cash advances.
Conditions and fees matter. It is essential to understand and know the fee structure for your card. Within the body of the cardholder agreement, look for answers to the following questions:
- Does my payment due date change?
- What happens if the payment is not received by the due date?
- Are there late fees?
- If so, what is the amount of the late fee?
- What happens if I charge over my credit limit?
- Are there over-the-limit fees?
- For a 90-day-same-as-cash deal, what happens if the deferred interest is not paid within the introductory offer period?
- Are balance transfers allowed?
- If so, what is the balance transfer fee?
- Is the interest on the cash advance the same as the interest on purchases and balance transfers?
