Simple Credit Cards – What You Should Know

A credit card is primarily a convenient payment mechanism It is
not intended to be a long term credit facility Should you
require long-term financing, you may wish to consider
alternative financial products
5 Questions you should ask yourself-
1 Why am I applying for this card?
2 Can I pay for the purchases in full each month? Or do I
intend to pay the minimum sum required and rollover my payment?
3 If I do rollover my payments, do I have the capacity to pay
the accompanying charges?
4 Do I understand the terms and conditions for the use of the
card? For example, do I know what are the various fees,
interest, finance charges and penalties that accompany the use
of the credit card?
5 What action can the bank take if I fail to settle my overdue
payment?
10 Questions you should ask the bank:
Membership Fees 1 When will the promotional free membership
period, if any, expire? What is the fee I will have to pay after
the expiry period?
Payment 2 What is the minimum amount I have to pay each month?
3 How much interest do I have to pay on the outstanding amount?
4 If I do not make the minimum payment for one month, what are
all the interest and other charges that I will have to pay?
5 What are the charges I will incur if my payment, either by
cheque or GIRO, is returned for whatever reasons?
Cash Advances 6 If I take a cash advance from my credit card
line, what are the charges that I will have to pay?
Loss of Credit Card 7 If I lose my credit card, what must I do?
8 If I lose my credit card, what are my liabilities for
unauthorized purchases?
Credit Limit 9 What is my credit limit?
Changes in Terms and Conditions 10 If there are any changes in
the terms and conditions of the use of the card, will I be
informed of these changes? If do, when will I be informed of
these changes?

Tags | cash, charges, credit, expiry, fees, Finance, liabilities, limit, mechanism, membership, overdue, payment, result, unauthorized