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Credit Card Checklist It is important to know which questions to ask when considering Credit Cards. You will need to consider the Credit Cards use, and what the purpose of having the Credit Card entails. You will also need to consider APR and Fees, and whether you intend to repay your debts in full each month, or if you are making partial payments. If you are paying in full, you won’t need to worry about too many fees, other than the APR. If you intend to extend the balance each month, then will you have the extra cash to pay the finance fees and APR? Do you intend to use the Cash Advance option, and if so can you repay the debt, plus the fees incurred? It is important to ask your self these questions, since credit cards are a major responsibility. You will need to ask the card provider of the Credit Cards you are considering what the APR entails. Many cards include APR on late fees, purchases, cash advances, and balance transferring. Therefore, if you are looking for a Credit Card then make sure the card provider explains in detail what the APR entails. Interest Interest is also important, since the rates can change dramatically. Few card providers offer Tier rates, Variable Rates, and Fixed Rates. The fixed rate cards are more profitable for you in most instances. Grace Periods What about Grace Periods…is it important to understand this feature on credit cards? Sure it is, in fact it is VERY important that you understand grace periods on credit cards. The grace period is important, since if you go over the cycle you are subject to penalties, finance fees, and additional interest rates. Therefore, ask the bank if the balance carry over on grace periods have penalties, and if so, what are those charges? Ask the credit cards provider if the balance is paid in full do you receive benefits. Also, ask the lender if the credit cards have penalties on cash advances and are there grace periods that detail the advances. Finance Fees You must also learn all you can about the finance fees. Often credit cards have attached fees, including fees for advances, fees for late charges, and fees for other charges. Does the lender estimate your fees by a ‘one or two’ cycle. Are the fees adjusted or are the fees standard. What is the minimal financial charge per item? Will the estimated figure exclude newer purchases made on the card? This is merely a checklist, but if you are looking for a credit card and learning as you move along, you might think of other questions you may want to ask. Charges You will also need to find out if the credit cards have additional fees, including annual fees, late charges, setup fees, and credit limit override fees. Cash If you have cash advances included on your credit card, you may want to ask the lender the amount you can borrow, and what the fees entail against advance cash. Credit Cards You will also need to know if the credit cards are secured cards, unsecured cards, Premium cards, or standard cards. Credit Limits ALL credit cards have credit limits. There are no exceptions, except the issue regarding the cardholder. In other words, if you have excellent credit, most likely you will receive a large credit line. Always, make sure you know what your limit is and watch your statements closely to avoid additional fees. Offerings Some cards offer cash back rewards, points, fly miles; other types of miles, and so forth, offering credit cards holders the ability to earn some of their money back. The programs may offer free stays at hotels, flights, merchandise, and so forth for earning credit. Be sure you ask all details on the rewards, since some lenders will restrict your limit, or else not allow you to cash in until a cycle. Insurance Is there fraud insurance coverage on your credit cards? If so, how much protection do you have, and how much will you pay out of your pocket if your cards are stolen or lost? Finally, this is merely a brief checklist, but once you become acquainted with the different types of cards, more questions may come to mind.
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