Applying for Credit Cards

Let's take a look at applying for new credit cards. Since my past couple posts have received such a high hit rate. I think this must be of some interest.

A little saying I like regarding credit card applications.

"What the bold print giveth, the fine print taketh away."

Not sure who said it, but he had to be a genius.

We have have received these great credit card offers. 5.99% FOR BALANCE TRANSFERS AND NEW PURCHASES. This sounds like a pretty good offer.

What you must do is flip over the offer sheet and read the "FINE" print. There is a box on the back broken up into several different areas. The federal government requires this for every credit card application.

This sets the terms and conditions. Such as how long is this 5.99% in effect? What will the rate adjust to after introduction rate? What are the annual fees? How is interest rate calculated? (Average Daily Balance or Two Cycle Billing) Word to the wise always get Average Daily Balance NEVER Two Cycle Billing.

In my upcoming book I will have an example of credit card application.

What is the Grace Period for new purchases?

These are the type of questions that are answered on the back of the application.

LESSON: If you receive an application and the rate or terms seem too good to be true, beware of credit card. ALWAYS LOOK FOR FINE PRINT.

Hope this helps.