Credit Card eZine - News and Articles about Credit Cards

Credit Card Deals - Make Sense of the Fine Print!

2008-02-12

That's no surprise that credit cardholders avoid reading the fine print on their credit card agreements. Even if you start reading it, you can hardly get the idea. Although you credit card agreement is written in English, it makes absolutely no sense! Reading the fine print is like guessing the riddles of the Sphinx. Once you fail to find the proper solution, you have to pay for it, and sometimes it may cost you dear.

The problem is, credit card language is all about legalese. Lenders admit this fact, but they are not so willing to change anything. Credit industry is all about hidden icebergs, and credit issuers make money on our mistakes. Protect yourself from foolish mistakes - make sense of the fine print on your credit card agreements!

It's worth saying that most credit cardholders do not read the fine print. Making another credit card deal, you may get tempted with those zero interest rates, or exceptional rewards. However, there's no guarantee you will actually get it. All the truth about credit cards is hidden in the lines of the fine print. The question is: who reads it?

According to the statistics, approximately 30% of cardholders read their credit card contracts, or at least they try. Information is a power when it comes to plastics. Once you are aware of all the terms and conditions on your plastics, you are protected against unexpected changes that may lead to financial difficulties.

Let's start with interest rates on your cards. Like it or not, different interests apply to credit card purchases, balance transfers, and cash advances. And don't forget about penalty rates that hit you every time you make a late payment, or exceed your credit limit, or right after your score has suddenly dropped.

Pay close attention to interests on your cards. Your lender may change fixed rates to variable and vice versa. If you see this statement in your credit card agreement, keep an eye of your interest rates on a regular basis.

Would you like to take advantage of your balance transfer card and pay off the higher-rate balance? Slow down, and read the fine print carefully. Most lenders state that your credit payments will go toward the lowest-rate balance first. So, make your choice wisely!

Some credit issuers may also state that your minimum payment may hike to 4% of the balance. By all means, for some credit users it may become an unwelcome surprise. But in fact, it's not so bad in view of the fact that it will help you pay off your debt faster.

Credit card fees are also of great importance. Most obviously, credit issuers won't specify all credit card fees on this or that card, but you are sure to find all the necessary information about credit card fees in your credit card contract.

Pay attention to late payment fees and the amount of grace period. What do they have in common? Nowadays, credit issuers have a tendency of cutting grace periods up to 20 days. It means that the evidence is great that you can miss your payment. So try to make your credit payments on time. You may pay your bills online in order to save your time and energy. And if you feel like you are short of money, contact your creditor and discuss this problem with credit professionals.