Some Advice to Manage Your Cards Well
Plastic money as we know it, is one of the most useful tools ever invented by man, and it is also a very useful utensil in times of emergency. It also saves time and space. You do not have to carry money in your pocket anymore and you can count on big amounts of money with you whenever you need them.
Being a useful tool as it is, it can turn also into a financial burden if it is not well handled and will surely lead you into financial trouble. Whenever you want to learning more about it, our Texas consumer credit counseling can help you.
Here, we present some popular inquiries about credit cards:
What you should look for in a credit card
People need to pay extra attention to 3 main characteristics in order to make a final wise decision:
- Interest rate
- Annual fee
- Grace period
Legally, banks and credit card companies are required to explain about these three characteristics once somebody applies for the card. There are some cards that pay rebates as well and some others offer frequent flyer miles. People need to decide if they can handle paying a high annual fee for these extra bonuses. Make use of our Texas consumer credit counseling in order to understand everything.
Fixed rate or floating rate on card - Which one?
The interest rate gets charged whenever you purchase something or you get a cash advance (usually two different rates). There are fixed and floating interest rates. Fixed rates are not completely fixed because the banks keep changing these rates over a certain time-period. Floating rates are commonly lower than the fixed ones. Nevertheless, these rates fluctuate every month due to the last T-bill sale or because of other uncertain factors. Whenever you buy something, it could take longer that usually. This way is more difficult to calculate the exact amount that people will have to pay.
Let our team: the Texas consumer credit counseling help you with everything you do not understand.
Annual fee and how it works
The Annual fee is an amount of money that your card issuer bills you annually through your account. It happens every year on the same date your account was opened and the bank bills you with the next year's fee. Some banks and credit card companies give the first year's fee for free in order to draw more costumers, but the second one will surely be charged.
Sometimes people do not need to pay the annual fee because of the amount they handle a year and/or because of certain conditions. As soon as you fulfilled said conditions, you will not have to pay them. People should talk to their agency in order to know the criteria.
Several fees
Almost all credit cards have several fees. One very important is the over-limit fee, and it is charged if you acquire something beyond your credit limit. This kind of fee goes from $15 to $22. People have to learn to read the contract before getting into anything and pay extra attention to the part where the fees on the account are explained. That could avoid a lot of misunderstandings.
The importance of the grace period
It is the time after the billing date when people have to pay off the bill free of any charge. Banks and credit card companies normally have a wide grace period, from 20 to 27 commercial days. The grace period starts from the date printed on the bill, not when you received it.
Difference between discount and rebate
When you get a percentage of your purchase refunded, it means you got a rebate. You can receive it by check or they can simply put it into your account. And when you acquire a reduction in your price before paying it, it is called a discount.
Evaluating a secure card
There are several important questions you should consider asking before acquiring a new card:
- How much is the interest paid on the deposit?
- How and when can you get an unsecured card?
- Ask about the interest charges and penalties, and how you should pay for them.
- Ask if in case of an emergency, you can access the deposit fund. And remember to read the contract thoroughly and ask about anything you do not understand because banks and card companies have the obligation to explain everything to you.
Remember not to have the same kind of card several times, say, two Visas or Master cards because you will have to pay fees for each one of them. Therefore, it is better to have one of each in order to be able to charge at places that receive one but not the other.
Gold cards - good or bad?
Whenever you get a gold card, you receive several extra benefits in order to compensate the high annual fee. Some useful benefits are: frequent flyer miles, increased credit limit, travel insurance, increased warranty purchases and of course, your financial status increases and some other.
Remember to always ask anything you do not understand in order to make the best decision for yourself and your pocket because a credit card is an amazing tool in this day and age but can become a heavy burden when you do not give the right use.
Our Texas consumer credit counseling group will help you understanding everything you need to make wise decisions.
Check these links to learn more:
http://www.bill-consolidation-and-debt-negotiation.com/consumer-credit-counseling/TX-Texas/Consumer-Credit-Counseling-TX-Texas.shtml
http://www.bill-consolidation-and-debt-negotiation.com/consumer-credit-counseling/CA-California/Consumer-Credit-Counseling-CA-California.shtml
Being a useful tool as it is, it can turn also into a financial burden if it is not well handled and will surely lead you into financial trouble. Whenever you want to learning more about it, our Texas consumer credit counseling can help you.
Here, we present some popular inquiries about credit cards:
What you should look for in a credit card
People need to pay extra attention to 3 main characteristics in order to make a final wise decision:
- Interest rate
- Annual fee
- Grace period
Legally, banks and credit card companies are required to explain about these three characteristics once somebody applies for the card. There are some cards that pay rebates as well and some others offer frequent flyer miles. People need to decide if they can handle paying a high annual fee for these extra bonuses. Make use of our Texas consumer credit counseling in order to understand everything.
Fixed rate or floating rate on card - Which one?
The interest rate gets charged whenever you purchase something or you get a cash advance (usually two different rates). There are fixed and floating interest rates. Fixed rates are not completely fixed because the banks keep changing these rates over a certain time-period. Floating rates are commonly lower than the fixed ones. Nevertheless, these rates fluctuate every month due to the last T-bill sale or because of other uncertain factors. Whenever you buy something, it could take longer that usually. This way is more difficult to calculate the exact amount that people will have to pay.
Let our team: the Texas consumer credit counseling help you with everything you do not understand.
Annual fee and how it works
The Annual fee is an amount of money that your card issuer bills you annually through your account. It happens every year on the same date your account was opened and the bank bills you with the next year's fee. Some banks and credit card companies give the first year's fee for free in order to draw more costumers, but the second one will surely be charged.
Sometimes people do not need to pay the annual fee because of the amount they handle a year and/or because of certain conditions. As soon as you fulfilled said conditions, you will not have to pay them. People should talk to their agency in order to know the criteria.
Several fees
Almost all credit cards have several fees. One very important is the over-limit fee, and it is charged if you acquire something beyond your credit limit. This kind of fee goes from $15 to $22. People have to learn to read the contract before getting into anything and pay extra attention to the part where the fees on the account are explained. That could avoid a lot of misunderstandings.
The importance of the grace period
It is the time after the billing date when people have to pay off the bill free of any charge. Banks and credit card companies normally have a wide grace period, from 20 to 27 commercial days. The grace period starts from the date printed on the bill, not when you received it.
Difference between discount and rebate
When you get a percentage of your purchase refunded, it means you got a rebate. You can receive it by check or they can simply put it into your account. And when you acquire a reduction in your price before paying it, it is called a discount.
Evaluating a secure card
There are several important questions you should consider asking before acquiring a new card:
- How much is the interest paid on the deposit?
- How and when can you get an unsecured card?
- Ask about the interest charges and penalties, and how you should pay for them.
- Ask if in case of an emergency, you can access the deposit fund. And remember to read the contract thoroughly and ask about anything you do not understand because banks and card companies have the obligation to explain everything to you.
Remember not to have the same kind of card several times, say, two Visas or Master cards because you will have to pay fees for each one of them. Therefore, it is better to have one of each in order to be able to charge at places that receive one but not the other.
Gold cards - good or bad?
Whenever you get a gold card, you receive several extra benefits in order to compensate the high annual fee. Some useful benefits are: frequent flyer miles, increased credit limit, travel insurance, increased warranty purchases and of course, your financial status increases and some other.
Remember to always ask anything you do not understand in order to make the best decision for yourself and your pocket because a credit card is an amazing tool in this day and age but can become a heavy burden when you do not give the right use.
Our Texas consumer credit counseling group will help you understanding everything you need to make wise decisions.
Check these links to learn more:
http://www.bill-consolidation-and-debt-negotiation.com/consumer-credit-counseling/TX-Texas/Consumer-Credit-Counseling-TX-Texas.shtml
http://www.bill-consolidation-and-debt-negotiation.com/consumer-credit-counseling/CA-California/Consumer-Credit-Counseling-CA-California.shtml
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