What You Don"t Know About Credit Cards
Card companies are required by law to disclose their credit card fees schedules to their customers.
However, the calculations of the credit card charges are almost always found only in the fine print, which often times cardholders neglect to read.
What you do not know may lead to expensive mistakes, which is why it is imperative to always read the fine print or the terms and conditions of your card.
Additionally, read the following factors you may not know about your card: Not all cards have grace period While most credit card companies are allowing a 20 to 30 days grace period, where cardholders can pay their entire balance without incurring any credit card charges, there are some cards that have shorter grace period or none at all.
0% balance transfers means high fees 0% balance transfer have become increasingly popular with many people.
These types of cards offer 0% interest rate on balances transferred for a certain amount of time.
However, no matter how attractive the offer may be, know that these cards will charge 3% to 5% balance transfer fees.
If say, you will transfer $3,000 from other cards to your newly opened interest card.
You are bound to pay approximately $90 and $ 150 in credit card charges.
While this type of card provides great offers to those interested, do know that transferring money is not completely free.
Two-cycle billing method can increase interest fees Two-cycle billing methods works by computing the average daily balance using the cardholder's current billing cycle purchase as well as the purchases from the month before regardless if the previous purchases have already been paid off.
To avoid any added charges, it is best to avoid cards that use this type of billing method.
Fifteen days notice can increase your interest fees Card companies have the right to increase or modify cardholders' interest fees and charges any time they choose as long as they give every person concerned a fifteen days' notice.
The best indication of this is when you receive an update to your credit terms in the mail.
Know that your card provider can change even fixed rates.
You pay more if you pay only the minimum payments Paying only the minimum required payments will not only take forever for cardholders to pay off their outstanding balance, they will also be charged with high interest rates that have accumulated each month that the balance remains unpaid.
However, the calculations of the credit card charges are almost always found only in the fine print, which often times cardholders neglect to read.
What you do not know may lead to expensive mistakes, which is why it is imperative to always read the fine print or the terms and conditions of your card.
Additionally, read the following factors you may not know about your card: Not all cards have grace period While most credit card companies are allowing a 20 to 30 days grace period, where cardholders can pay their entire balance without incurring any credit card charges, there are some cards that have shorter grace period or none at all.
0% balance transfers means high fees 0% balance transfer have become increasingly popular with many people.
These types of cards offer 0% interest rate on balances transferred for a certain amount of time.
However, no matter how attractive the offer may be, know that these cards will charge 3% to 5% balance transfer fees.
If say, you will transfer $3,000 from other cards to your newly opened interest card.
You are bound to pay approximately $90 and $ 150 in credit card charges.
While this type of card provides great offers to those interested, do know that transferring money is not completely free.
Two-cycle billing method can increase interest fees Two-cycle billing methods works by computing the average daily balance using the cardholder's current billing cycle purchase as well as the purchases from the month before regardless if the previous purchases have already been paid off.
To avoid any added charges, it is best to avoid cards that use this type of billing method.
Fifteen days notice can increase your interest fees Card companies have the right to increase or modify cardholders' interest fees and charges any time they choose as long as they give every person concerned a fifteen days' notice.
The best indication of this is when you receive an update to your credit terms in the mail.
Know that your card provider can change even fixed rates.
You pay more if you pay only the minimum payments Paying only the minimum required payments will not only take forever for cardholders to pay off their outstanding balance, they will also be charged with high interest rates that have accumulated each month that the balance remains unpaid.
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