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.
CONTENTS
2.1. Credit Card Terms
Fees
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
Source: www.ftc.gov
