Find the Right Credit Card Special Offer

Choosing a Credit Card to Use

Credit card companies are eager to sign up consumers and often encourage an “act now; think later” mentality. The companies send “pre-approved” card offers with low introductory rates and other perks. Many of these have a credit card special offer that appeals to the consumer’s sense of urgency by encouraging them to accept “or else this offer may expire” or “before the rates go up.” Do not get distracted by these marketing techniques; take your time, research different card offers and pick the best option for you.

A credit card is essentially borrowing money where fees, charges and interest rates will be added to the amount the consumer pays back. The amount of the item purchased with credit is the same fixed amount regardless of the type of card used, but the terms and conditions applied to the purchase by the credit card company vary from card to card. This makes it very important for the credit card user to know what type of fees and charges are going to be applied to all their purchases. It is essential to compare credit card offer options when you’re choosing a credit card to use, in order to get the best terms and conditions. You may want to call several card companies and speak to their sales or customer service representatives. This will give you the opportunity to ask questions, compare credit card offer rates and fees, and become knowledgeable about the options that are available to you.

Here are some terms and concepts that are important to understand when learning about credit card options:

APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated o­n the account and o­n your account statements.

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.

Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators - called indexes - change. Because the rate change is linked to the index's performance, these plans are called "variable rate" programs. Rate changes raise or lower the finance charge o­n your account. If you're considering a variable rate card, the issuer must also provide various information that discloses to you:

·        that the rate may change; and

·        how the rate is determined - which index is used and what additional amount, the "margin," is added to determine your new rate.

At the latest, you also must receive information, before you become obligated o­n the account, about any limitations o­n how much and how often your rate may change.

Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you'll have enough time to pay.

  Most issuers charge annual membership or participation fees. They often range from $25 to $50, sometimes up to $100; "gold" or "platinum" cards often charge up to $75 and sometimes up to several hundred dollars.

A card may include other costs. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.

If you don't understand how your balance is calculated, ask your card issuer. An explanation must also appear o­n your billing statements.

Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. If you expect to pay your bills in full each month, the annual fee and other charges may be more important than the periodic rate and the APR, if there is a grace period for purchases. However, if you use the cash advance feature, many cards do not permit a grace period for the amounts due - even if they have a grace period for purchases. So, it may still be wise to consider the APR and balance computation method. Also, if you plan to pay for purchases over time, the APR and the balance computation method are definitely major considerations.

You'll probably also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan's services and features. For example, you may be interested in "affinity cards" - all-purpose credit cards sponsored by professional organizations, college alumni associations and some members of the travel industry. An affinity card issuer often donates a portion of the annual fees or charges to the sponsoring organization, or qualifies you for free travel or other bonuses.

Some cards with low rates for o­n-time payments apply a very high APR if you are late a certain number of times in any specified time period. These rates sometimes exceed 20 percent. Information about delinquency rates should be disclosed to you in credit card applications or in solicitations that do not require an application.

Federal law prohibits issuers from sending you a card you didn't ask for. However, an issuer can send you a renewal or substitute card without your request. Issuers also may send you an application or a solicitation, or ask you by phone if you want a card - and, if you say yes, they may send you o­ne.

Federal law protects your use of credit cards.

  An issuer must credit your account the day payment is received. The exceptions are if the payment is not made according to the creditor's requirements, or the delay in crediting your account won't result in a charge.

To help avoid finance charges, follow the issuer's mailing instructions. Payments sent to the wrong address could delay crediting your account for up to five days. If you misplace your payment envelope, look for the payment address o­n your billing statement or call the issuer.

  When you make a return or pay more than the total balance at present, you can keep the credit o­n your account or write your issuer for a refund - if it's more than a dollar. A refund must be issued within seven business days of receiving your request. If a credit stays o­n your account for more than six months, the issuer must make a good faith effort to send you a refund.

  Issuers must follow rules for promptly correcting billing errors. You'll get a statement outlining these rules when you open an account and at least o­nce a year. In fact, many issuers include a summary of these rights o­n your bills.

If you find a mistake o­n your bill, you can dispute the charge and withhold payment o­n that amount while the charge is being investigated. The error might be a charge for the wrong amount, for something you didn't accept, or for an item that wasn't delivered as agreed. Of course, you still have to pay any part of the bill that's not in dispute, including finance and other charges.

  If your card is used without your permission, you can be held responsible for up to $50 per card.

If you report the loss , you can't be held responsible for any unauthorized charges. If a thief uses your card before you report it missing, the most you'll owe for unauthorized charges is $50.

To minimize your liability, report the loss as soon as possible. Some issuers have 24-hour toll-free telephone numbers to accept emergency information. It's a good idea to follow-up with a letter to the issuer - include your account number, the date you noticed your card missing, and the date you reported the loss.

Here are some tips to think about when looking for a credit or charge card.

·        Shop around for the plan that best fits your needs.

·        Make sure you understand a plan's terms before you accept the card.

·        Hold o­n to receipts to reconcile charges when your bill arrives.

·        Protect your cards and account numbers to prevent unauthorized use. Draw a line through blank spaces o­n charge slips so the amount can't be changed. Tear up carbons.

·        Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates and the phone numbers of each issuer to report a loss quickly.

·        Carry o­nly the cards you think you'll use.