The Change of Terms Notice!

 

Oh yes, once each year credit card companies will send out this notice to customers. This letter will inform you of changes to your credit card agreement regarding both new clauses, and more importantly new fees! Now it’s true some people just take a brief look at the paperwork and think it won’t affect them too much and then just put it down. But actually some of these changes can be quite hefty. You must read any letter closely and make yourself fully aware of any changes to your credit card agreement and what they may mean.

So What Will They Look at Changing?

Well the biggest thing will probably involve the dreaded rising annual percentage rate. If you don’t pay off your card in full at the end of each month then this change in interest can see you paying a lot more in the long run!

The worrying thing is this could be up to 28 per cent in some cases. Look very closely at the small print for more information on this.

If there’s a sizeable increase then you might like to transfer the balance to another card with a lower APR! Don’t be afraid to play the long financial game!

Look Out for the Clauses!

Let’s say you make late payments on your credit card on two occasions in a 12-month-period. The credit card company can throw a new clause in saying they have the right to increase the interest rate because of this.

This is just such example that could take you by surprise! Look out for the clause changes!

If You’ve Had a Cash Advance Make Sure You’re Aware of This!

 
Cash advances seem to be a growing trend in recent years, but some credit card companies will charge you for each transaction. Look out for this and possible interest charges on these advances. It has been known for a company to raise APR on the balance from 22 percent to 32 per cent. That’s an enormous hike so beware!

This is Important to Let’s Look at Disputes?

Sometimes companies make mistakes with credit card accounts or balances, and normally they’d put this right as a matter of course. But you may have to tell them first! This can range from a time period from 30 to 90 days.

All of these things can make a big difference to you financially so always read the letters and analyse the small print. Don’t let the credit card companies get ahead of you. It’s so easy just to accept things without asking questions. So take control and enjoy your credit cards!

Hey you’re like a kid on Christmas day when your new credit card arrives in the post. You’re so happy you could almost kiss the postie!

You get out the card and activate it just as quick as you can, but what do you do with the paperwork? File it as you should but without reading the small print?

Oh Oh……….big mistake. Credit card agreements should be studied closely……….a bit like the runners for the Kentucky derby!

Note the ‘Truth in lending Act or TILA’ and May the Force Be with You!

 
The American government have decreed any entity issuing credit to any type of consumer must disclose various facts to them before any transaction takes place.

‘Disclosure’ provides this information, but you must ensure this helps you make informed and sensible financial decisions.

Sounds complicated but it isn’t and it’s done to protect you. No……not from an Al Gore video but from making financial mistakes!

Thank You Oh Wise People – So Explain More to Me?

If you don’t take a look at the fine print, the chances are the card will cost you a lot more in the long run. Just ask Mussolini?

Let’s Begin With the Most Important of Things – the APR

 
The annual percentage rate is simply the cost of borrowing in terms of the interest you’ll pay. Any credit card company must tell you what the APR is on balance transfers, defaults and cash advances.

Alongside this there are tiered APR’s charging a higher rate of interest above a set amount, and introductory APR’s which go up after a certain time period. APR’s can be either fixed or variable.

Then There’s the Finance Charge!

Certain cards carry finance charges. For example if your finance charge comes out to $0.50 this month and the minimum finance charge for your card is $1, you will need to pay $1. But if you pay off the balance of your card in full each month then this charge won’t apply. Double check!