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If the Prints tiny, then the Credit Card Companies do not Want you to knowIts nearly impossible for anyone to take advantage of loopholes if you don't know what they are.
However, if you know what the terms are you can definitely save money, especially if you shop around and find better deals. Therefore, when you review a credit card agreement, make sure that you read the fine print so that you will understand the overall cost of the credit card as well as the following: Interest rates Usually the extremely low rate or 0% intrest will only be for six months and it will be advertised in large, bold, colorful print, that you will not miss. However, you will need the use of a super powerful magnifying glass to learn that this Great rate quickly skyrockets once the introductory period is over, or that the extremely low rate only applies to balances transferred from other credit cards. Another item that is usually printed in microscopic print is that the fixed rate can be increased. Credit card companies reserve the right to change interest rates for any reason, which can be a shock to many consumers who expect the low advertise rate to stay low. Interest calculation This too will be found in the very fine print. You need to understand how your interest is figured. The most common method is the "average daily balance. However, if your interest is calculated using the "two-cycle" system, in which interest on the balance is retroactive to the time the purchases were posted to the account. By carefully reading the fine print, the consumer wants to look for wording such as,
interest will accrue from date of purchase. Fees Credit card companies raise fees, and invent new ones to the point that it is not unusual for a customer to be charged over $25 every day their payment is late. For this reason, you must pull out that magnifying glass and carefully read the fine print for terms concerning late payment and over limit charges. You also want to search for any hidden surprises including "inactivity" fees, which are fees you are charged for not using the credit card. Other fees you should be concerned about are annual fees and penalties for paying off the balance. Grace periods This is the amount of time the consumers have to either make their monthly payment or to payoff the balances. However, credit card companies can cut their grace periods from 25 days to 20 with little advance notice to their customers. Credit "purity" This is a clause that several credit card companies have started to use, which gives them the right to increase your interest rate if they discover that you have been late paying other bills. Cash advances -- Cash advances can carry a heavy fee as many credit card companies usually charge 2% to 4% of the cash advance amount. In addition, they also impose a higher interest rate than what they regularly charge. In addition, the interest begins accumulating the moment you make the transaction and will continue to accumulate until you pay off the lower-interest balances. These are just a few of the many items that can be buried deep in the microscopic print on the countless number of papers included with the monthly statement, fliers and advertisements that many of us simply toss away. Next time you receive your monthly
statement read the fine print. It could end up saving you hundreds.
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