Credit Card Must Know Terms and Conditions


Credit Card Must Know Terms and Conditions

Credit cards have specific terms and conditions and before you choose or accept a credit card you need to understand these conditions.

You should in fact compare the terms and conditions of various credit card providers against one another as there are a number of factors to take into consideration before you accept anything. Trust our recommended provider for Payday Loans

There are some credit card terms that you will always come across as particular credit card must know terms and conditions. These particular items you will usually find as a common factor between all the credit card offerings.

You will be given an opportunity to review all the relevant terms and conditions of the credit card before finalisation as well as being sent a copy with your credit card. These should be kept in a safe place.

The terms and conditions of a credit card can be rather a lot of information which can often be confusing. A summary box is also provided where you will usually find your responsibilities and such.

There are some main terms that you will find in the credit card agreement being:

  • Annual percentage rate (APR)

  • Interest free period

  • Introductory rates

  • Fees and

  • Default charges.

So what is the credit card must know terms and conditions? And how will you make sense of it all?

Credit Card Terms and Conditions Made Easier

The first thing that should be explained is the main terms which are listed above, that you will see in the agreement.

1. Annual Percentage Rate (APR) – This interest that is charged on purchases that are made over a year. It is expressed as a percentage of the amount that was borrowed. The APR will include the interest on the amount borrowed as well as other mandatory non interest coats like a yearly fee. It will not show any avoidable charges such as a late payment fee.

2. Interest Free Period-This is the time frame where a customer will not be charged interest and is also the period time that customers have to clear their balance in total before interest is charged.

3. Introductory Rates-This is an interest rate that is offered for an initial period of time that is lower than the average rate. The introductory rate is usually applied to balance transfers and cash advances but can be applied to purchases. After the initial period is over the interest rate may then go up.

4. Fees-The fees that are charged with your credit card will vary across various providers. The general credit card fees include:

  • Annual fee: a fee that is charged per year for having a credit card

  • Application fee-when you apply for a credit card you will be charged a fee

  • Cash advance fee-you will be charged when making a cash advance

  • Balance transfer fee- when you transfer a balance you may pay a fee

  • Finance charge-this is an interest charged monthly fee for having a credit card balance beyond the grace period, which is the period of time you have to pay your balance in full.

  • Late fee- you will be charged a fee if you make a payment that is less than the required minimum or if the payment is late or both of these.

  • Over the limit fee-this is when you have a balance that is above the credit limit

  • Returned check fee- a fee is charged when the bank returns a payment check. This happens when there is not enough money in the bank.

  • Foreign transaction fee-if a transaction is made in foreign currency a fee is charged.

5. Default Charge-These are charges that occur when there is a missed or late payment.

These are the main terms that you need to know but you also need to know what is actually in the credit card agreement itself.

Credit Card Agreement Outline

The agreement for the credit card will include the following:

  • The credit limit and the information that explains how your credit card provider can change it.

  • The particulars of using the credit card in another country

  • How you are able to pay your credit card balance so that you don’t end up in Debt Review

  • The way your information is shared or kept private

  • The changes to your account that the credit card issuer can make

  • What creates default and what it means to default

  • What to do if your credit card is lost

  • How to close your credit card account

  • If there are disputes with credit card issuer it explains how

  • to handle them and

  • The legal organisation that imposes the agreement

You will need to read all the fine print of the credit card terms and conditions and fully understand the credit card must know terms and conditions plus keep up to date with your credit reports. If you are unsure about certain aspects it’s wise to ask your issuers before you accept a credit card.

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