January 16, 2009
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For most consumers, the fine print on credit cards isn’t examined when the account has been opened. Unfortunately, this fine print can outline the terms and conditions of the card therefore, it is essential that the card holder be aware of the terms which are explained.
Although, those consumers that do read the fine print – are you really able to distinguish between the credit card terms mentioned in the fine print? Use this primer to guide you along the next time you become immersed in the fine print.
Annual Fee
The annual fee on a credit card is a separate entity from the interest charges which accrue as a service charge for credit card usage. There are hundreds of credit cards available that come without the average annual fee of $50.00 – even most rewards cards! When searching for a credit card, remember that the annual fee will be tacked on to your first payment once the account has been opened and usually at the beginning of the year after the account has been established. (more…)
October 28, 2008
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Banks or other financial institutions provide credit cards. You must apply and get approved by the creditors before you can have and use one. Having a good credit score is a plus to have a better chance on getting approved for a credit card while having a bad credit score can be hard to get approved for a credit card.
Credit Card providers basically give you a credit limit amount that you can spend for your purchases, bills payment or balance transfers. You will be given a monthly statement containing all the charges on your account and your minimum monthly payment due. You should take note of your due date and make sure that you send the minimum payment ahead of time since credit card providers are charging $25 to $35 for a late fee. Not only you should send the payment on time but make sure that your payment is not less than the minimum payment they are asking or you will also be charged of the late fee.
Knowing the methods of payment your credit card provider accepts can be a big help in managing your account. Posting of payments on your account depends on the method of payment you use so better ask them on how many days will your payment post to your account after you pay. For example, if you pay via check over the phone, they credit your payment on your account instantly but it may take up to 2 days before your payment post if the payment is made online. Knowing these tiny details can help you maintain your account and helps you build your credit score.
Another thing that you need to look out for is your credit limit. Although you have a credit limit, some charges can still go through and can cause over limit charges. A good example of these are those recurring charges set up on your account and even late fee can cause your account to go over the limit and charge you with an over limit fee because of the late fee. Credit card providers can be very sneaky and go away with these charges so better take time to read their terms and agreement.
Having a credit card should be taken seriously and having one is a big responsibility that should not be taken lightly. A large number of people are in debt with their creditors so make sure you manage your account properly to enjoy the advantage of having a credit card.
