Knowing the terms of your charge card agreement will assist you in comparing cards, knowing once you should change to a new card, and enable you to cut costs by working the system. Therefore, let us begin by listing several key terms found in charge card agreements and explain what they mean:
Pre-approved – You likely have received an offer in the mail stating that you have been “preapproved” for a credit card. This can be a misleading, common, practice of charge card companies, as you have not been pre-approved for anything. Mostly pre-approved means you have met some initial guidelines pertaining to your creditworthiness. To receive a pre-approved charge card notice doesn’t guarantee you is likely to be approved for the card if you select to use for it.
Annual Fee – Simply put, many charge cards have an annually membership fee attached to their usage. Usually, the charge ranges from approximately $25 to $75, but there are premium cards which charge around a couple of hundred dollars.
Transaction Fee – In the event that you are likely to use your charge card for transactions apart from purchases, such as balance transfers and cash advances, charge card issuers usually charge a transaction fee. The card issuers will sometimes waive these fees for new cardholders within an introductory offer. The transaction fee is usually calculated as a share of the transaction amount 신용카드 현금화. You can find card issuers who maximize the fee at a specific dollar level; however those card issuers are rapidly disappearing.
Grace Period – If a credit card features a grace period of 21 days, it indicates card interest won’t begin accruing for 3 weeks, provided that you paid your balance in full the last month. Using a credit card grace period to your advantage allow you to avoid paying finance charges by paying your balance in full ahead of the monthly due date. If the card has no grace period, interest will begin accruing your day you transact with the card. Many consumers utilize the grace period to get free from paying finance charges on the purchases while maintaining the ease of using a credit card as opposed to cash.
This is simply not all the data available on charge card agreements, at best it is an introduction to charge card legalese. Hopefully it is of value to you.