Credit Card Articles
A few very important Credit Card terms
There's a big chance you have got one or two in your own letter box, they are
supposedy pre-approved, you then send off and wait and maybe they'll get back to
you, maybe not.
These promotions are nothing new, they have been in existence right from the beginning of credit cards themselves.
Getting one of these cards can be good and even beneficial to a point but if you do decide to go ahead and post that application form back, you would be well-advised to read the contract thoroughly, just don't apply for any card if you are not sure about the plan terms associated with it.
There are tons of terms and ways to really sting you financially so I cannot stress enough how important it is for you to study all terms, making sure you understand everything , so that you won't have any bad surprizes a few months down the line.
Something you want to look for is "interest free period". This is very important and could save you a fair bundle when using the card. An interest free period allows you to use your card without paying interests on the money you borrow from them.
For instance, most cards I know of will have a month's grace period, during this month you use your card and at the end of the month you will get your bill., you then have a choice: you can either:
1) Pay your bill in full, this way you just pay what you owe and no interests are charged.
2) You pay your minimum amount only. This way they will charge you interests on the money you owe and if you wish you can carry on each month paying your minimum amount, which probably will just about cover your interests, the choice is yours to take, at any moment you decide to pay what you owe you can simply pay it off and estinguish your debt.
3) A variation of 2 is that you can pay all you can, you don't have to necessarily pay the minimum amount, just pay half , most of it or whatever you can pay, the requirement is that you don't pay below the minimum amount.
As you can see, having an interest free period is a quite important factor when deciding whether you are getting this or that card.. read on >>>