Shopping New Credit Cards? – Tips To Choose The Best
Many of these solicitations urge you to accept “before the offer expires.” Before you accept, shop around to get the best Credit card deal.
What are 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 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. You also may want to ask about these terms when you’re shopping for a card.
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 credit card account and on your credit card account statements.
The card issuer also must disclose the “periodic rate” – the rate applied to your outstanding balance to figure the finance charge for each billing period.
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. Rate changes raise or lower the finance charge on your credit card account. If you’re considering a variable rate credit card, the issuer must also provide various information that discloses to you:
* That the credit card rate may change; and
* How the rate is determined – which index is used and what additional amount, the “margin,” is added to determine your new rate.
At the latest, you also must receive information, before you become obligated on the credit card account, about any limitations on how much and how often your credit card rate may change.
Free Period. Also called a “grace period,” a free period lets you avoid credit card finance charges by paying your balance in full before the due date. Knowing whether a credit 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 credit card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your credit card 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 credit card issuers charge annual membership or participation fees. They often range from $25 to $50, sometimes up to $100; “gold” or “platinum” cards often charge up to $75 and sometimes up to several hundred dollars depending on the credit card you settle for.
Transaction Fees and Other Charges; A credit 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 credit card.
Balance Computation Method for the Finance Charge; If you don’t have a free period, or if you expect to pay for purchases over time, it’s important to know what method the credit card issuer uses to calculate your finance charge. This can make a big difference in how much of a finance charge you’ll pay – even if the APR and your buying patterns remain relatively constant.
Average Daily Balance; This is the most common calculation method. It credits your account from the day payment is received by the issuer. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your credit card account that day. While new purchases may or may not be added to the balance, depending on your plan, cash advances typically are included. The resulting daily balances are added for the billing cycle. The total is then divided by the number of days in the billing period to get the “average daily balance.”
Adjusted Balance; This is usually the most advantageous method for Credit card holders. Your balance is determined by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases made during the billing period aren’t included.
This method gives you until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior, unpaid finance charges from the previous balance.
Observing the above tips will go along way in ensuring that your shop for a good card and also maintain a good credit rating.
Article Source: http://www.articlesbase.com/credit-articles/shopping-new-credit-cards-tips-to-choose-the-best-703420.html
About the Author
Abhishek is a Financial expert and he has got some great Credit Repair Secrets up his sleeves! Download his FREE 96 Pages Ebook, “How To Achieve A Better Credit Score!” from his website http://www.Trading-Masters.com/21/index.htm. Only limited Free Copies available.
Credit Card Tips For Total Beginners
When starting out your adult life, a few things are needed. Those things include an education, driver’s licence, your own place and independence, and a job. One thing that many young adults don’t realise is that a good credit rating it very important for the future. But how does someone with no credit history start? Well, one answer to that is the credit card, that item that polarises opinion between those who love them, those who hate them, and those who don’t care. It’s easy to get caught up in the stories told about plastic money causing bankruptcies, defaults and other financial complications while forgetting one main point: You control you level of debt, not a little piece of plastic that lives in your wallet.
Knowing that you are responsible for you level of debt raises the question: How can I be responsible and help to get a good start to my credit history?
This is a question rarely answered, and it is easy to find out the hard way of what not to do.
Be Knowledgeable And Wise With Your Choices
Firstly, when you are looking at signing up for your first credit account, look around, research, and don’t be afraid to ask questions and say no to offers. Many people, when looking to get hold of some plastic money tend to forget that they are the ones who get to approve the credit card offered to them, it’s not just the bank or financial institute who can say no. So can you. Look online at the various sites of the companies offering cards, and read all the information, from the advertising that makes the card look so alluring, to the fine print down the bottom in tiny writing. The tiny writing contains what you need to know about any fees, charges or penalties that can be incurred, how and when the interest rate will rise, and other information that makes the offer look less attractive.
Plan Ahead And Know Your Own Limit
Having this knowledge at hand, take a look at your finances, and find out how much you can afford to repay each month. Take this into account when you consider your credit limit. You won’t be offered a very high limit to begin with, however if you can’t afford a high amount, then choose a lower limit. Just because you are offered a higher limit doesn’t mean you should just say yes. Remember, it is your credit account, and you can decide between offers. As an individual just starting out, it is unlikely the bank will be willing to negotiate with you. But if they’re not willing to listen to your wants and needs, then it is unlikely they will change that tact in the future. Go with a bank or financial institute that you feel comfortable with and who you feel will listen to you.
A Credit Card Is Not An Impulse Item
When you sign up for a card, keep in mind that this is not an impulse item. Don’t let a salesman on the street or in store talk you into signing without giving you time to think. Also, don’t sign up over the internet. Go into the bank and speak to a person who you can ask questions to.
Article Source: http://www.articlesbase.com/personal-finance-articles/credit-card-tips-for-total-beginners-4098994.html
About the Author
Credit cards are serious business. Make sure to get the best deals. Visit Suncorp and Bendigo Bank on CreditCardOffers.com.au
Credit Card Tips to Save You Money, Time and Worry
Credit cards are sometimes as harmful as they are beneficial if you dont understand deeply how they work or how best to use them to your advantage. So, what should you do to save yourself from having to sell an arm and a leg to repay credit card debts? Here are a few tips to help you stay out of the cooking pot in the first place.
Read the Fine Print: One of the biggest problems that consumers of all kinds face is not reading the fine or small print. Most times because the deal seems just so good, we take it up on impulse before we carefully consider the implications. It is always best to go through the Terms and Conditions governing the deal or promotion and the underlying disclaimers. They may contain more snakes than you may anticipate. It would be arduous, but it is worth in the long run.
Get Rid of Annual Fees: If you have a fairly good credit history, you can opt to call the issuing company and request them to waive the annual fee applicable on your card. If they dont, simply drop it and move on to the next one. After all, you are a reliable borrower, so they should be happy to do business you as you have a low risk of not paying back.
Be Careful with Promotional Checks: A lot of times promotions have another side to it. So, if you receive check, think twice before you dive in. Balance Transfer Fees may be a little elusive sometimes and may just result in fees that you may not want to be involved with.
Watch out for the Due Dates: It is very much advisable that you always watch out for due dates every time, because they are sometimes changed by the credit card companies so they could collect late payment fees and raise your rate.
Try Waiving the Late Fees: If you have never been late before paying your balance and fees, you can call up the credit card company to have them waive the late fees for you. Worst case scenario is that they will refuse it. But it doesnt harm to just call them and try.
Always Pay in Full: Always try to pay in full every single month. Just be over confident and use the credit card like it is you check or debit card. These are funds that you dont own and may be liable for any fees and interest rates applicable on it. So, use it with care and make sure that you pay in full every month.
Give Priority to Credit Union Cards: It is always a better option to use credit union cards since they usually have a lower interest rate in addition to other benefits.
Follow these tips religiously and you may just be saving yourself a few hundreds or thousands every year.
Article Source: http://www.articlesbase.com/non-fiction-articles/credit-card-tips-to-save-you-money-time-and-worry-205288.html
About the Author
Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on credit cards and apply for credit cards online at http://www.creditcardlaunchpad.com
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