Apply 4 A Credit Card and How to Choose The Right One...
are you have received many "pre-approved"
offers in the mail, some with low introductory rates and other
benefits. Before you accept these offers, you should shop around to
get the best deal. Shopping around for a credit card can save you
money on interest and fees. In addition, you will want to find a
card with features that match your needs.
When you receive
offers in the mail, examine the fine print before you accept any
offer. Review the following items very carefully:
- Annual Percentage Rate (APR)
- determine if it varies, how the variation is determined and when
can it change.
- Period Rate - This is the interest rate used
to figure the
finance charge on your balance.
- Annual Fee - Amount you pay to be a
cardholder. Not all cards charge an annual fee.
- Grace period - This is the number of days you
have to pay your bill before finance charges begin to accrue.
- Finance charges - Most lenders calculate
finance charges using an average daily account balance. Look for
offers that use an adjustable balance, which subtracts your
payment from your beginning balance.
- Other fees - Ask about special fees when you
get a cash advance, make a late payment, or go over your credit
The Fair Credit and Charge Card Disclosure Act requires credit
and charge card issuers to include this information on credit
applications. For this information and more, please visit the
Consumer Action website's
credit cards website.
You may wish to inquire with
companies to see if their cards offer any special features. Some
credit cards may allow for interest-free payments on certain
The following resources provide information that can help you
understand the features of credit cards, compare the features and
costs, know your rights, and file a complaint:
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