How To Decipher Credit Card Offers

Posted by Jason Derulo Jr

March 25, 2010

Trying to figure out the difference between the many credit card offers you receive may be overwhelming. Even though you may think that no annual fee and a low interest rate is what you have to look for, there is more! Take a serious look at the fine print and see what you may be missing.

If you choose a card from a company that uses a universal default clause, this company can easily raise your interest rate. Why? Well, this type of clause allows a company to raise your interest rate if you are late on any other payment to anyone of your creditors. This means any decision you make lowering your credit score can be a means for your credit card company to raise your rates.

Although some companies will not tell you this kind of clause is active, there are ways they will raise your APRs. Always keep your eye on change in terms. These provisions will tell you that the lender has the right to raise your rates for any reason they deem necessary. Try to choose a card that will detail these specific reasons.

Credit card companies usually base their finance charges on the daily balance amount you have on the card for that particular month. Other companies use the adjusted balance billing, which is preferred as a customer. This will calculate the interest only on the balance that is on the card at the beginning of the billing cycle. Avoid cards that have a two-cycle billing, this method calculates finance charges based on the average daily balance for the last two months.

Keep an eye out for no annual fees that are made up by service or minimum finance charges. You may be getting charged anywhere from $2-$6 dollars per month behind the veil of a service charge. This adds up to at least a typical annual fee, and many times more so!

Look for a grace period. A grace period comes in handy if you make a purchase and do not have a balance from the previous month. This will give you a ‘grace period’ of at least 22 days before the company begins charging you interest on the purchase. If you are the type of person that pays off your balance each month, this can help you avoid getting hit with interest on your purchases.

Many times people will rush when choosing a credit provider without complete consideration of different credit card offers. This can be at the cost of financial well-being. Take the time to read the fine print. Keep in mind that many companies will not even give you the entire terms of agreement until you have received the credit card in the mail. In order to prevent being hit with any surprises you can visit the company’s website for more details on their terms.

Want to compare credit cards, then visit www.instantcreditcard.org to find the best credit card offers for you.

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