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Interest Free Days, Grace Period

If your card issuer gives you no interest free period you will have to pay interest from the moment you use your card till the moment that you pay the balance off, in other words every time you use the card you are getting charged interests, no matter what you do.

Something else quite important is the amount af APR they will charge you. The APR is the interest rate as charged per year rather than per month, credit card companies can quote you a monthly APR on their marketing material, however this is a bit of a misnomer in that APR stands for "annual percentage rate" and the true APR they must disclose to you before you sign any agreement with them, this is by law.

To make it even more complicated, there is such a thing as a Nominal and Effective APR. The Nominal APR doesn't include all the fees, so make sure you know what the *Effective Annual Percentage Rate" is before you sign anything.

It sometimes is as simple as checking a few numbers and read up a few things and you won't get charged the earth for your shopping!

Another very important thing to consider is the "Membership Fee". Yes some card firms will charge you $20 per year, some as much as $150 and some will charge you nothing!

Then read up what the surcharges are, should you happen to go over your credit card limit, it does happen quite often when first get started and your spending credit is low, so make sure you know what would happen if you were to over spend.

Last but not least, if you are in the habit of getting advance cash on the card, make sure you know how much it costs you to do that.

This is mostly all there is about, except naturally for extra charges if you fail to pay back even the minimum amount when your bill comes through but we won't go there :)..

Read part one of this article >>>

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