Posted on August - 28 - 2010
Credit Card Info worth Knowing
With the financial uncertainty going on around us, most especially the news that over a million Americans have low credit scores being the latest, it is best that we keep our credit line and finances safe from harm. And because credit cards are an extension of those things, you need to be really careful and responsible in using them so you won’t fall into any financial trouble.
But there might be a few things about credit cards that you do not know (usually found in the fine pint of the contract) and it could be for your best interests to know about them. Here are some of those hidden facts about credit cards:
Credit Cards Have a Limited Grace Period
Most credit cards have a grace period in which you would not incur any interest from your purchases using the card. These grace periods usually last around twenty to thirty days depending on the offer of the card, but lately credit cards have started to have shorter or even no grace periods at all. Look for this piece of information in the fine print so you know how long you could take advantage of it.
0% Balance Transfers Are Not Free
These credit card balance transfers with 0% interest might have a 3-5% fee when used, and this might not be pointed out except in the fine print of the contract. Just bear this in mind whenever you transfer funds from your other cards into your new 0% interest credit card that this balance transfer service is not free. This way, you won’t be surprised if you are asked to pay up when you use the service.
Fifteen Days Notice for Credit Card Fee Increases
Credit card companies have the right to change or even increase your fees and interest rates at any time, and they are required to inform you through a fifteen day notice sent to you in the mail. So be sure to check you mailbox thoroughly to see if there are any of these notices instead of just carelessly tossing them into the trash without so much a second glance. You could sure use the update so you would know about the fee and interest rate change so you could plan ahead on what to do about it.
Low Minimum Payment Fees Leads to More Payments
Paying the minimum payment for your credit card fees each month would not be enough to sort out your balance, and you need to be warned that interest rates could add up faster than you could pay off the entire balance just using the minimum payments. So pay at least more than that so you would not have any incoming financial trouble in the future.
Credit cards are a convenience to have, but you have to be well-informed to make use of them to your advantage. So keep these advices in mind when you use them and keep your credit scores and finances afloat.
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