Plastic
money as we know it, is one of the most useful tools ever invented
by man, and it is also a very useful utensil in times of emergency.
It also saves time and space. You do not have to carry money in
your pocket anymore and you can count on big amounts of money
with you whenever you need them.
Being
a useful tool as it is, it can turn also into a financial burden
if it is not well handled and will surely lead you into financial
trouble. Whenever you want to learning more about it, our Texas
consumer credit counseling can help you.
Here,
we present some popular inquiries about credit cards:
What
you should look for in a credit card
People need to pay extra attention to 3 main characteristics in
order to make a final wise decision:
- Interest rate
- Annual fee
- Grace period
Legally,
banks and credit card companies are required to explain about
these three characteristics once somebody applies for the card.
There are some cards that pay rebates as well and some others
offer frequent flyer miles. People need to decide if they can
handle paying a high annual fee for these extra bonuses. Make
use of our Texas consumer credit counseling in order to understand
everything.
Fixed
rate or floating rate on card – Which one?
The interest rate gets charged whenever you purchase something
or you get a cash advance (usually two different rates). There
are fixed and floating interest rates. Fixed rates are not completely
fixed because the banks keep changing these rates over a certain
time-period. Floating rates are commonly lower than the fixed
ones. Nevertheless, these rates fluctuate every month due to the
last T-bill sale or because of other uncertain factors. Whenever
you buy something, it could take longer that usually. This way
is more difficult to calculate the exact amount that people will
have to pay.
Let
our team: the Texas consumer credit counseling help you with everything
you do not understand.
Annual
fee and how it works
The Annual fee is an amount of money that your card issuer bills
you annually through your account. It happens every year on the
same date your account was opened and the bank bills you with
the next year’s fee. Some banks and credit card companies
give the first year’s fee for free in order to draw more
costumers, but the second one will surely be charged.
Sometimes people do not need to pay the annual fee because of
the amount they handle a year and/or because of certain conditions.
As soon as you fulfilled said conditions, you will not have to
pay them. People should talk to their agency in order to know
the criteria.
Several
fees
Almost all credit cards have several fees. One very important
is the over-limit fee, and it is charged if you acquire something
beyond your credit limit. This kind of fee goes from $15 to $22.
People have to learn to read the contract before getting into
anything and pay extra attention to the part where the fees on
the account are explained. That could avoid a lot of misunderstandings.
The
importance of the grace period
It is the time after the billing date when people have to pay
off the bill free of any charge. Banks and credit card companies
normally have a wide grace period, from 20 to 27 commercial days.
The grace period starts from the date printed on the bill, not
when you received it.
Difference
between discount and rebate
When you get a percentage of your purchase refunded, it means
you got a rebate. You can receive it by check or they can simply
put it into your account. And when you acquire a reduction in
your price before paying it, it is called a discount.
Evaluating
a secure card
There are several important questions you should consider asking
before acquiring a new card:
- How much is the interest paid on the deposit?
- How and when can you get an unsecured card?
- Ask about the interest charges and penalties, and how you should
pay for them.
- Ask if in case of an emergency, you can access the deposit fund.
And remember to read the contract thoroughly and ask about anything
you do not understand because banks and card companies have the
obligation to explain everything to you.
Remember
not to have the same kind of card several times, say, two Visas
or Master cards because you will have to pay fees for each one
of them. Therefore, it is better to have one of each in order
to be able to charge at places that receive one but not the other.
Gold
cards – good or bad?
Whenever you get a gold card, you receive several extra benefits
in order to compensate the high annual fee. Some useful benefits
are: frequent flyer miles, increased credit limit, travel insurance,
increased warranty purchases and of course, your financial status
increases and some other.
Remember
to always ask anything you do not understand in order to make
the best decision for yourself and your pocket because a credit
card is an amazing tool in this day and age but can become a heavy
burden when you do not give the right use.
Our
Texas consumer credit counseling group will help you understanding
everything you need to make wise decisions.
Check
these links to learn more:
http://www.bill-consolidation-and-debt-negotiation.com/consumer-credit-counseling/TX-Texas/Consumer-Credit-Counseling-TX-Texas.shtml
http://www.bill-consolidation-and-debt-negotiation.com/consumer-credit-counseling/CA-California/Consumer-Credit-Counseling-CA-California.shtml
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Nancy Smith is a contributing writer to http://www.bill-consolidation-and-debt-negotiation.com
and is currently writing some special articles to guide business
on how to manage debt and avoid bankruptcy.
For Free Information on How to Manage Your Cards Well and Debt
Help Consultation, call toll-free 1-877-850-3328
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