If you haven’t already opted out I am sure that you have gotten one of those 0% credit card offers in the mail. Did you quickly fill out the form and then send it in, or faster still, call in and sign up that way? After all you didn’t want to miss that great offer! Well, I have one question for you – did you bother to read the fine print? Fortunately, these days the fine print is required to be a bit larger and more organized so that you can actually read and understand it.
Here are some of the things that you need to check before you apply for any credit card – in fact you should check the fine print on the cards you already have to see what you are paying!
I suggest you make an excel spread sheet that contains the items discussed below so that you can check them off and compare cards – that is the way to get the best deal for yourself. (If you don’t know what kind of credit card user you are make sure you read the previous article before you decide on the card you want to apply for.)
First, it is critical to find out how long those special offers are good for and what they change to at the end of that time. Next, find out what the finance charges are for purchases, balance transfers, cash advances, and any other special offers they may have. Are the rates variable or fixed? You should also find out the grace period. Make sure you know the type of balance calculation method – is it one or two cycle, and does that cycle include new purchases or not.
The last thing you need to find out is the various fees associated with this card. Remember the acronym – BLOATU . It is what the fees are designed to do – bloat your balance so that the credit card company makes more money. Did you know that there is no limit on the fees that credit card companies can charge?!
The most common fees are:
Balance transfer
Late fee
Over the limit fee
Annual fee
Transaction fee for cash advances
Usage fee
A lot of that information can be found in the offer you receive in the mail, but there are also some ‘hidden’ charges. Some of these are related to the balance on the card. There may be tiered rates. This happens when there are different finance charges for different levels of balances.
Linda Adams is an innovative and seasoned facilitator & educator with more than 20 years experience designing and implementing programs for audiences of all ages. She is dedicated to helping others realize how important their credit is to every facet of their lives. You can find more credit education and information at http://www.CleanCreditQueen.com
