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Debit credit cards12/15/2023 Transaction fees and other charges - Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. ![]() If your card includes a grace period, the issuer must mail your bill at least 14 days before the due date so you’ll have enough time to pay.Īnnual fees - Many issuers charge annual membership or participation fees.Some card issuers assess the fee in monthly installments. Instead, interest charges start right away. Most credit cards do not give a grace period for cash advances and balance transfers. The grace period usually applies only to new purchases. For example, the credit card company may say that you have 25 days from the statement date, provided you paid your previous balance in full by the due date. Grace period - The grace period is the number of days you have to pay your bill in full without triggering a finance charge. If you’re considering a variable rate card, the issuer also must tell you that the rate may change and how the rate is determined.īefore you become obligated on the account, you also must receive information about any limits on how much and how often your rate may change. Rate changes raise or lower the finance charge on your account. Because the rate change is linked to the index’s performance, these plans are called “variable rate” programs. Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators - called indexes - change. The card issuer also must disclose the “periodic rate” - the rate applied to your outstanding balance to figure the finance charge for each billing period. It must be disclosed before your account can be activated, and it must appear on your account statements. When you’re trying to find the credit card that’s right for you, look at the:Īnnual percentage rate (APR) - The APR is a measure of the cost of credit, expressed as a yearly interest rate. And, in some cases, credit cards might seem like great deals until you read the fine print and disclosures. Fees, interest rates, finance charges, and benefits can vary greatly. When applying for credit cards, it’s important to shop around. The finance charge depends in part on your outstanding balance and the annual percentage rate (APR).Ĭharge card - If you use a charge card, you must pay the balance in full each time you get your statement.ĭebit card - This card allows you to make purchases in real-time by accessing the money in your checking or savings account electronically. And if you don’t pay your bill on time or in full when it’s due, you will owe a finance charge - the dollar amount you pay to use credit. You can use these checks in place of your card, but they’re not a gift - they’re also a loan that you must pay back. Some credit card issuers also provide “courtesy” checks to their customers. And some issuers charge an annual fee for their cards. But remember, buying with credit is a loan - you have to pay the money back. And if you’re shopping for a credit card, it’s important to compare fees, interest rates, finance charges, and benefits.Ĭredit card - You can use a credit card to buy things and pay for them over time. ![]()
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