Credit Card Comparisons

When deciding which credit cards to keep or apply for be aware that there are provisions contained in many credit card applications and agreements you should be thoroughly knowledgeable about BEFORE you agree to them. If fact, there are some provisions you want to avoid entirely meaning if you have a credit card obligating you to certain terms and conditions, cancel it and don't apply for credit card offers with these conditions in the agreement.

Here is a listing of provisions contained within credit card terms and conditions to look out for.

1. Back Dating of Finance Charges
If you don't pay your credit card statement balance in full every month most credit card companies will charge interest for a purchase from the day it is posted to your account. However, some credit card companies will charge interest from the date you purchased the item. This can be several days before the merchant has been paid. We recommend not carrying or using any credit cards with this method of calculating finance charges. Either find a credit card issuer that will charge interest from the date of posting or, if you insist on using the card, pay the balance off each and every month.

2. A Provision Commonly Called: Two Cycle Billing
Let's say you decide you don't want to pay the balance of your statement off entirely one month. Some credit card companies will charge interest for two months rather than one month on your new balance the first month. This will occur only for the first month you carry a balance but should be avoided all together by either paying the balance off in full or getting a credit card that will does not have a two cycle billing policy.

3. Fees and Interest Rate Charges
Many people are paying an annual fee just for the privilege of carrying a credit card. This is a shame because there are plenty of credit cards out there that do not require an annual fee. Another policy that is not set in stone is credit card rates. Some credit card customers with stellar credit scores and good payment histories are paying over 20% interest. These policies are negotiable and if you are a customer with a good history you should call customer service to get the annual fee waived and the interest rate reduced! They will do this most of time - if you just try. However, If your credit card company will not go along with you switch to an issuer that will!

4. Card Balance Off Set to Your Bank Accounts
You may have thought how convenient it was to choose your bank among the many credit card applications that were available to you at the time you wanted to apply for a credit card. Did you read the fine print? Your bank probably had you agree to take the funds from whatever deposit account you have with them to pay your credit card balance if you don't pay it. "WHOA" you say, "can they really do this?" Better dig out your bank deposit agreements and your credit card agreement to find out. If you find this provision, cancel the card and get one from a totally separate financial institution where you do not have deposits.

5. Due Dates Shorter Than What They Were
You often get revised credit card agreements in the mail. Most people toss them without reading all of the fine print. Well, if you pay your balance off in full every month you may have gotten a revised credit card agreement advising you that your 25 day grace period is now 20 days. Call them and ask to have the grace period changed back!

6. Retroactive Interest Rate Increases
Most everyone knows that credit card companies can change interest rates at will. However, some people that apply for a credit card for the low introductory rate do not realize that when the "teaser rate" expires the entire balance is subject to the new much higher rate RETROAVTIVELY! This can clobber people that have transferred a big balance to take advantage of the lower rate and did not get it paid off before the new rate took effect. If you have one of these low rate new card offers, make sure you know when the higher rate takes effect and have your balance paid off.

Make intelligent credit card comparisons!