SHOP FOR YOUR CREDIT CARD
Smart consumers comparison shop when looking for credit such
as a mortgage or an auto loan. It is also a good practice to
engage in when choosing a credit card. The choices you make
can save you money.
Shop among some of the credit card issuers listed in this
brochure. Compare them with cards you already have and with
offers you receive in the mail for the terms that best suit your
spending and repayment habits.
Key credit terms to consider in the credit card
Annual Fee - a flat, yearly charge similar to a membership fee.
Many credit card issuers charge an annual fee for granting you
credit, typically $15 to $55. Some issuers charge no annual fee.
Annual Percentage Rate (APR) - the cost of credit
expressed as a yearly rate.
Finance Charge - The dollar amount you pay to use credit.
Besides interest costs, it may include other charges associated
with transactions such as cash advance fees.
Transaction Fees and Other Charges- Some issuers
charge a fee if you use the card to get a cash advance, if you fail
to make a payment on time, or if you exceed your credit limit.
Some may charge a flat fee every month whether you use the
card or not.
Grace Period - A time, usually 25 days, during which you can
pay your credit card bill without paying a finance charge.
Average Daily Balance - A balance calculation method most
creditors use in calculating their finance charge. The average
daily balance is calculated by adding each days balance and
dividing the total by the number of days in the billing cycle.
Adjusted Balance Method - This balance used to calculate
the finance charge is derived by subtracting the payments you've
made from the previous balance. This method is most favorable
to the customer.
CREDIT CARD FEATURES TO CONSIDER
Smart consumers find the best deal for their budgets and
repayment styles. If you always pay your monthly bill/s in full, the
best type of card is one that has no annual fee and