All About Credit Card that You Should Know

best credit card review

Credit cards provide convenience in life. But it can bring you into debt. It's good to get back to the basic ideas, and help to explore the fundamentals. Here are some things you should know about credit cards:
Terms and Conditions
It is an agreement which contains rules governing the issuance and use of credit cards. In the form, you will sign and use the card. You confirm that you have read, understood and accept the Terms and Conditions. If you agree, then you can use the card according to the rules that have been agreed.
Total Amount
The total amount of your debt, including purchases, cash advance, finance charges, penalties, costs, and others at the date of the statement.
Minimum Amount
Least amount you need to be paid on or before the Payment Due Date to keep your account from going into default. Some of them the sum of 1) the amount of the balance (excluding purchases in installments) multiplied by the percentage of required payments; 2) monthly installments due, if any; 3) any amount that exceeds your credit limit; 4) all amounts due.
Credit limit
A maximum or total amount for the purchase of certain goods, withdraw cash, transfer funds or balances, and other financial expenses that can be charged on your credit card.
Grace Period
the number of days before the start card issuer to charge interest on new purchases credit card. Usually a period of 25 to 30 days. Benefits of a grace period is that you can enjoy if you pay the bill in full. It was canceled after the previous month's bill is not paid in full. Each new purchase will be added to your balance and interest.
Financial Expenses
Amount of interest charged on all transactions on your statement. Interest is usually calculated by multiplying the Principal, the rate and time. Time here is calculated per transaction basis for different transactions on your statement may have a variety of date of posting.
Average daily balance
The most commonly used method of computing the financial burden. With regard to credit your account on the day the payment is received by the publisher. To find the balance due, the total balance of the initial publisher for each day in the billing period and subtracting credits made to your account that day. While new purchases may or may not be added to the balance, depending on your plan, cash is usually included. The resulting daily balances are added to the billing cycle. This amount is then divided by the number of days in the billing period to get the "average daily balance."
Another way for computing the financial burden. In this method, the interest rate applied to the balance amount at the end of the billing period. It will include purchases and payments made during the billing period.

Cost in Credit Card
Cash Advance Fee
Charged to you every time you use the card to withdraw cash. It usually ranges from 3% to 5% of the total advances or certain agreed amount, whichever is higher. In addition to the cost of advances, some card issuers charge interest or finance charges on the amount of the down payment is calculated from the date of billing hold up to date while others calculate the interest only when the amount of the down payment is not paid on the due date.
Overlimit fee
Charged to you if your total amount due exceeds the approved credit limit on your cut-off date.
Card Replacement Fee
Charged to you for the replacement of lost, stolen or damaged card
Balance transfer fee
Charged every time you transfer your balance from one credit card to another.
Annual fee
The amount you pay for as and using a credit card. It varies depending on the type of card you select and add your account statement and each anniversary date thereafter.
Late Payment Fee
Charged to the next billing statement. If you fail to pay at least the minimum amount due on or before the due date of payment. Some issuers charge a fixed amount while others charge a percentage of the minimum payment (eg 3% to 5%).

Credit Card ‘Consider Options’
Installmen Payment Facilities
This facility allows you to buy goods and services from merchants using your card and pay for the same thing, together with applicable interest and other costs or the rate of zero percent, the monthly payment. In the particular case or promotion, or card issuer company may allow you to convert the cash withdrawal transaction, the existing balance on the card or the balance on the credit card of other issues in installment transactions, which must be paid in monthly payments subject to the applicable interest and . Other fees
Cash Advance
Cash advances from your credit card through an ATM or over the counter. The interest rate for cash advances is usually higher than the Annual Percentage Rate (APR) for purchases. In addition to the interest you will pay on the amount advanced, you are also charged a cash advance. Limit your down payment is set as a percentage of your credit limit. At any given time, the total advances and interest on them can not exceed the limits of your down payment.
Balance Transfer

The process of moving an unpaid credit card debt from one issuer to another with whom you also have cards. Card issuers offer teaser rates to encourage cardholders to transfer their balances to other publishers to take advantage of lower financial burden. This is one option if you are having trouble paying your credit card debt. It allows you to save a higher monthly fee, then the smart way to lower the cost of your balance. But it comes at a cost and a lower monthly rate offered may be limited only to the month. Inquire about this to make sure you do not end up paying the same monthly financial burden or higher.


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