Sorting out the terms of your credit cards

Here are a few tips to help you keep important information about your credit cards in mind.

10:35 25 May 2013

The debate over tax issues in the UK is likely to highlight areas of confusion and loopholes which should be properly dealt with. There no doubt have been many times when people read the terms of their credit cards and feel similar confusion, and if they are trying to be conscientious consumers and compare multiple credit card terms, the confusion may simply increase.

 

Here are a few tips to navigating the sometimes confusing world of credit cards:

 

• Fee schedule—you might receive an insert either at the time you are applying for a credit card, or even sometimes after you’ve had it for years. Take the time to read any literature that comes to you, or any electronic notifications. Often times the information is regarding the amount of fees and how they are assessed. 

 

• Minimum payments—while there may be times that you can only afford to make the minimum payment on your credit cards, the interest charged on the amount you owe will mean that you will be paying much more than the original amount, and for a much longer time as well. Paying more than the minimum can significantly reduce the interest you pay over the life of the loan.

 

• Penalties—some credit cards have different types of penalties. If you have an introductory rate you’ll want to know if there are things that will cancel your introductory rate. There may be other penalties such as higher interest rates if a late payment is received. 

 

If you keep up to date on any of the information provided for your credit cards, consolidate whenever possible (as long as it is beneficial to do so), and adhere to the stated terms you’ll be fine. If there is anything that you’re unsure of in the terms contact the credit card company for clarification.