Credit cards - Watch out for the fine print in your statement

Credit cards are generally safer than using cash, they provide a simple way to shop on the Web, and they help buyers to make purchases for which they don't immediately have cash on hand. In today's economical world, possessing a minimum of one credit card is essential; you cannot, for instance, obtain a rental car without one. The ordinary American household holds nineteen different debit and credit cards.

The credit card industry is a lucrative one, and you can easily add to their profits by neglecting to examine the fine print that accompanies your bill every month. Be aware when you use your charge card, or your fees and interest rate could increase quite a bit.

The credit card issuers are fast to point out their reasonable features. A large number of credit card accounts provide such amenities as a "permanent" low interest rate, or a "no charge" transfer of balances from other credit card accounts, or how easy it can be to take out a cash loan, or the "zero percent" teaser rate offered to new customers.
 

What the bank card companies do not often mention is the numerous fees that could end up on your bill if you do not look over the terms carefully. If you are not careful, a credit card can be a very pricey financial tool.

There may be a charge for a balance transfer, and it may be treated as a cash advance, which carries higher fees and interest rates than purchases do. If a balance transfer is viewed as a cash loan, you will not have a grace period. While banks like to tout their balance transfer abilities, do not make the assumption that moving the five thousand dollar balance over from one of your other accounts will be free. Be careful when transferring balances to a different account; it could cost you a lot of money.

Interest on cash advances accrues beginning the minute you take the cash out of the Machine. There is no grace period for cash advances. Your are allowed to use your credit card to obtain cash from an Automatic teller machine, but a fee will apply, as will a rate that will be substantially higher than for regular charges.

Late fees add up, and are many times as much as $39. Late fees or penalties apply if your payment arrives late, even if your check arrives on the day the payment is due. If your statement says that the payment is due at 11 AM, Central time, then it is late if it comes in after that time, even if it shows up later in the day. A late payment means one that arrives anytime after the specific time of day the payments are stated to be due.

The fine print on your bill typically states that the creditor may increase your rate at any time, for any reason, as long as they give you fifteen days notice. A "permanent" rate is permanent only until such time as the company decides that they want to raise your rate, at which point "permanent" becomes short-term. There is no such thing as a "permanent" interest rate, no matter what your issuing bank may claim. If they decide to keep your rate low for a long time, be thankful.

Be cautious when using your plastic; it could cost you a lot more than you thought it would. These are just a couple of the things one has to be on the lookout for when using a major charge account.