Credit Card Applications Fine Prints And Charges (hidden) : Know Your Way

The small print included in credit card application forms might not be clear and

understandable if you are fresh applicant here in Australia or anywhere in the world. It is vitally important to seriously read and understand everything that is found in these application forms, and there are a few details that you need to take note of.

Making an Informed Credit Decision

You have to have a clear idea about the credit cards APR, Credit limit, and Fees and Charges to be able to choose the best card for you.

What exactly is credit card APR? It stands for Annual Percentage Rate or the cost of using credit, expressed as an annual rate. This will be applied towards the balance or your unsettled credit card debt. Collect info on the APRs of credit card issuers in Australia to get the card with the lowest annual percentage rate.

Credit Limit on the other hand is simply how much credit the bank or company will give you after checking your credit rating. And since this is your first time to apply for a credit card, do not imagine that you will be given so much credit. But also be on the lookout for opportunities wherein you can request an increase of your credit limit soon after a good period of using your credit card and having a superb payment track record.

And now, what are credit card finance charges? This is the fee that you'll incur if you do not pay on-time. This will be a % of your total balance or a predetermined amount, whichever is larger.

One more matter you will certainly have to look at is the cards minimum payment. This is actually the smallest amount you can pay on your card every month and this can help you avoid defaulting on your paments in case you're in short supply of available cash. This is usually just a small percentage of your outstanding credit card balance.

Furthermore, though it isn't an option that you should really make use of frequently due to the high fees and interest rate costs involved, it is still good to know how much cash advance you can make with your credit card in case there is an actual emergency in which you need fast cash.

With a much better knowledge of credit card terms and conditions, it's easier to smartly decide on the most suitable card for you and begin filling in your credit card applications.

Tips in Making Much Better Credit Card Decisions

You also need to take into consideration that since credit card interest rates are regulated, the rates among different leading credit card companies may not have a substantive difference here in Australia. For this reason, credit card issuers separate themselves or create a brand using giveaways, other credit card services and technological innovations. Do a comparison of how many days each and every credit card company grants zero % interest. This credit card feature make it easy for credit card users to enjoy large savings in interest charges on all their purchases.

And an indispensable advice for new credit card holders is to keep an eye on obscure charges. Most credit card issuers have some kind of fees that enable them to make money out of your account even if you don't make use of it, or keep your account up-to-date with payments. A few of the hidden fees new credit card owners need to be informed of are the processing or transaction fees and annual fees which is distinct from maintenance fees. Hidden fees are usually based on additional credit card services such as payment protection plans.

Furthermore, it is also very good to be aware that you're getting points when you use your card. As opposed to making cash repayments, utilizing your credit card for making your purchases can get you points that you can eventually exchange for items or even money. There are certainly a number of good reasons on why buying with your bank credit card is a lot better than having to pay in hard cash.

by: Tim Duncsen

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