Things You Need to Know Before Signing up for a Credit Card Program

Here are credit card terminologies that you should pay close attention to before filing out and submitting an application for a credit card program.

credit cardsAnnual fees.

Apart from the interest charge, several credit card programs today will also require cardholders like you to pay annual fees. Although it might not be as common as it once was, still, many programs will require you to pay this fee, each year.

Now, if you wish to keep your annual payments minimal, we suggest you look for credit cards which waive this fee for the first three years of credit card use. Better yet, look for a line of credit that carries the lowest possible annual fee so that you won’t have to worry about making substantial payments to your card issuer, year in and year out.

Penalty charges.

Look closely at the fines and penalties that will be imposed on your transactions. For instance, consider how much you will have to pay for missing out or skipping on your monthly bills, the overdraft fees and declined transaction charges you will incur for maxing out your credit card, the finance charges you will pay each time you withdraw cash from your account, etc. If you think that the fees and charges are beyond your budget then, it might not be wise to sign up for the credit card program. Otherwise, you could end up paying steep penalties and fines, later on.

Interest method.

Read the fine print of your credit card program thoroughly and understand how the interest method works. Always remember that apart from the APR or the annual percentage rate, there might be other rates that will be imposed on your other credit card transactions, particularly on balance transfers and cash advances. So, to reach a sound decision whether or not to apply for the credit card program, you should take the time to study the interest method and applicable rates very well.

The grace period.

As we all know, the grace period represents the amount of time given to credit cardholders to pay off their credit card charges, without incurring interest. Hence, we advise you to look for a credit card program that can provide you with up to two months of grace period on purchases. By doing so, you can have ample time to prepare the funds you need to settle your bills in full, without worrying about making a steep interest payment to your card issuer.

Just remember that there are no grace periods imposed on most add-on features, like cash advance and credit card checks. So, you need to settle these transactions, as soon as possible.

Currency conversion charges.

Are you planning to use your credit card abroad? If you are then, you should seriously consider the currency conversion fees that will be charged on your overseas transactions. After all, the fees and charges usually vary from one credit card issuer to another. So, try to compare the payment schedule imposed on various card programs. By doing so, you will most likely end up with one that will surely match your needs and budget.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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