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Chapter 2 - Choosing A Credit Card

Choosing A Credit Card: The Deal is in the Disclosures

A credit card lets you buy things and pay for them over time. Using a credit card is a form of borrowing: you have to pay the money back.

When you are choosing a credit card, there are many features — and several kinds of cards — to consider: Fees, charges, interest rates, and benefits can vary among credit card issuers. As a result, some credit cards that look like a great deal at first glance may lose their appeal once you read the terms and conditions of use and calculate how the fees could affect your available credit.


2.1. Credit Card Terms
   Transaction Fees and Other Charges
   Annual Percentage Rate
   Grace Period
   Balance Computation Method for the Finance Charge
   Balance Transfer Offers
2.2. Balance Computation Methods
   Average Daily Balance
   Adjusted Balance
   Previous Balance
   Two-cycle or Double-cycle Balances
2.3. Other Costs and Features
   Default and Universal Default
   Special Delinquency Rates



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