Credit Card TermsTerms and conditions of credit cards
Here is a beginner guidebook to understand the terms and condition of credit cards and why it is a good idea by reading them before you sign up on the dashed line. Our terms and condition are your agreement with your credit card company. It is really the keys to avoid needless credit card fees, extra debts and, most of all, to maintain and improve your credit rating.
You credit card contract contains a summary of all fees payable and the eligibility requirements you must fulfil to prevent them, as well as the monthly deposit requirements. Various credit card companies will have their own terms and condition; it is a good suggestion to go through them well.
Let's take a look at the most commonly used terms you'll come across when you read the small letters on your credit card. This is the interest percentage you must add to your credit, along with any advance payments and commissions you may have to make. Whilst a representive APR is the typically interest charge calculated by a particular card issuer, the APR may differ according to your specific situation, which includes your creditworthiness.
When your credit rating is low, your card issuer will consider you as a higher exposure so they will offset it by calculating a higher APR. On the other hand, a high credit rating means that you have less credit exposure, so your interest is lower. General terms and conditons should include a statement of all these different sentences and an indication of when they are applicable.
It is the amount you can max out on your card. If you cross this border, you will have to charge high rates. Your credit card contract can be cancelled within 14 workingdays after you received your card. You must do this within 30 business days of the date of your request or take the responsibility to make charges for delayed payments and interest on the amount.
You should include a full and accurate breakdown of all accrued costs and expenses in your credit card contract.
This includes the yearly card charge, international transactions charge and any charge you may make for any violation of the Terms and Condition. Look out for carryovers, i.e. use your credit card to settle another credit card's debts, as extra costs are likely to be incurred. There is often a ceiling on how much of your credit you can draw on your new card.
Most credit card companies only allow you to pay up to 90% of your credit.
Most credit card companies charge interest on loans from the very first trading date - at a higher interest level than usual. A number of credit card companies provide initial cardholder benefits, which include APR for the first six to twelve month. The terms shall nevertheless prevail. Discounts may be cancelled if you are paying below the month end credit line or exceeding your credit line.
Please note that your credit card issuer may make any changes to the Arrangement provided they give you 30 business day prior 30 day prior 30 day Cancellation. And of course, don't neglect to keep an an eye on your credit rating. So the better your scores, the more likely it is that you will be getting the low interest rate and the best credit card deals.