Get To Know Credit Card Offers Before Deciding
The language of credit card offers may feel a bit murky, but it is one of those unavoidable things you have to sift through to save yourself from future financial pitfalls. Throughout the years credit card companies have been making their fine print language a bit sneakier. There are a number of precautions you can take when sifting through the fine print.
If you choose a card from a company that uses a universal default clause, this company can easily raise your interest rate. Why? Well, this type of clause allows a company to raise your interest rate if you are late on any other payment to anyone of your creditors. This means any decision you make lowering your credit score can be a means for your credit card company to raise your rates.
Even though this kind of clause may not be directly spelled out you can look for it in other ways. Sometimes they will come in the form of a ‘change of terms’. A company will include in these terms that it has the right to increase interest rates when it deems necessary. You can choose a card that is a little less ambiguous and actually tells you when and why it will change your rates.
Credit card companies usually base their finance charges on the daily balance amount you have on the card for that particular month. Other companies use the adjusted balance billing, which is preferred as a customer. This will calculate the interest only on the balance that is on the card at the beginning of the billing cycle. Avoid cards that have a two-cycle billing, this method calculates finance charges based on the average daily balance for the last two months.
Even though some cards claim they have no annual fee, they may make up for it with monthly service charges. Or, they will use a minimum finance charge. Both types of charges range from $2-$6. This can easily add up to a monthly fee, and then some.
Look for a grace period. A grace period comes in handy if you make a purchase and do not have a balance from the previous month. This will give you a ‘grace period’ of at least 22 days before the company begins charging you interest on the purchase. If you are the type of person that pays off your balance each month, this can help you avoid getting hit with interest on your purchases.
Reading the fine print can be difficult on credit card offers, especially if you do not see it! Most credit card companies do not even include all of their terms and conditions until you actually get the card in the mail. Avoid getting caught off guard by checking out the company’s website.
Want to compare credit cards, then visit www.instantcreditcard.org to find the best credit card offers for you.