Why You Need To Read The Fine Print Of Your Credit Card Agreement
Posted by: Staff Writer | Jul 15,2007
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People who want to make sure their credit score remains as high as possible are careful to read the fine print on their credit card agreement. They have worked hard for their money and want to make sure to maximize its uses, rather than wasting it on fees and other charges that credit card companies like to put in the fine print of your credit card agreement.
Fees, Fines and Payments in the Fine Print of Your Credit Card AgreementAll of the information on extra fees, fines and payments and the reasons you'll get them will be listed in the fine print. It is possible that you can be charged up to three different interest rates for different purchases on the same card. It may also be possible to have your interest rate raised if your payment is late, on that card or another, or even your mortgage or car payment.
There are many important reasons to read the fine print on your credit card agreement. The most significant of all is the fact that if it is vital to your future credit standing. So break out your magnifying glass. It is time to do a bit of heavy reading.
Top Three Reasons to Read the Fine Print of Your Credit Card AgreementHere are the top three reasons why you need to read the fine print of your credit card agreement.
- Universal Default Clause: If this is in the fine print of your credit card agreement, it is telling you that if you're late on any payment, as soon as it shows on your credit report, your interest rate payment on that card goes up. It usually must be at least thirty days late and is most often something major like a mortgage or car payment, but can also be a Sears card.
- Setup Fees: Say you get a card offer that says you're approved for a card with a $1,000 limit. Oh, joy! You get your card in the mail and then, huh? What's this? The limit is only $200. Had I read the fine print I would have seen that from that $1,000 credit limit there are immediate fees removed. They removed fees like a $100 program fee, a $50 setup fee and a $100 participation fee. The list of potential fees can go on forever.
- Terms of the Agreement: This may be the most important reason of all to read your fine print. It may very well say that the terms of your credit card agreement can change at any time and for any reason. If you don't know when your terms can change, it could be a nasty surprise.
To be responsible with your credit card and finances is also to be knowledgeable of the fine print. You need to read the fine print of your credit card agreement not only to be aware of your responsibilities but your rights as well. Taking the time to go through it all ensures that you're prepared and nothing will take you by surprise.
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