Take Charge America Helps Consumers Decode Credit Card Terms and Conditions
Nonprofit credit counseling and debt management agency defines commonly misunderstood language
“Credit card mailers are designed to entice,” said
Sullivan decodes seven common terms and conditions to help consumers better understand credit card offers:
Annual Percentage Rate: The APR is the annual interest rate consumers are charged on top of their balance. If your credit card has a 10 percent rate, you’ll pay
Low Introductory Rate: The key word here is “introductory.” While some cards’ introductory rates are good for 12 months or more, it’s far more common for a low rate to jump up after a few short months. Make sure you understand how long the promotional rate will last before applying for a card.
Penalty Rates: Low interest rates are fickle – they will skyrocket the first time you’re late on a payment or if you fail to pay the minimum amount due. Most cards will also charge a fee in these instances, usually
Variable Rates: If your card carries a variable rate, it’s subject to increase without notice if the prime rate goes up. Even if your card is advertised as fixed rate, the fine print usually states it’s only fixed for 12 months.
Balance Transfers: With balance transfer offers, consumers can transfer their debt from high-rate cards to a low or zero-interest cards. On the surface, this makes perfect sense because you’ll save on interest right away. However, you may be charged a transaction fee and have a variable or introductory interest rate, so do the math before signing up.
Cash Advances: Just like balance transfers, the cash advance can carry hefty transaction fees and an introductory rate that will soon expire. It’s an enticing offer – especially if you’re low on cash – but it’s probably worse for you in the long run.
Rewards: Consumers love buying gas or booking airfare on their credit cards knowing that they are earning rewards. Unfortunately, rewards are usually strictly limited. For example, some cards promise five percent cash back – but only on your first few hundred dollars in purchases. Some rewards programs are better than others, so read up before you start making purchases.
Consumers seeking relief from credit cards, student loans or other debt can visit takechargeamerica.org or call 866-528-0588.
About
Founded in 1987,
View source version on businesswire.com: http://www.businesswire.com/news/home/20171010005804/en/
[email protected]
Source:
Anthem Blue Cross and Blue Shield in Ohio and Cleveland Clinic Collaborate to Deliver Integrated Care
Latin American Headlines at 12:25 p.m. EDT
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News