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Tips & Suggestions
Summary to choose a credit card :
Is there an introductory rate, what is it and how long does it last?
*After that, what will my rate be?
*Is there an application fee?
*Are there processing fees?
*Is there an annual fee?
*Is there a late fee?
*Is there an over-the-limit fee?
*Are there any other fees, like account termination fees or balance transfer fees?
*When and how can a variable rate be changed?
*When and how can a fixed rate be changed?
*What is the grace period before interest is applied?
*How will you inform me of any changes in my contract?
*Will the company inform me if I am about to go over my limit?
*If I go over my limit, what happens?
*What is the company policy if I have trouble paying my bill?
What if you're pre-approved?
Pre-approved simply means the card company is aware of your credit history and standing. It doesn't automatically give you any special rates or breaks when it comes to the terms and costs of the deal. And the small print will generally give your card company the opportunity to chance the deal you were preapproved for.
Beware of credit card scams
There are a lot of unscrupulous people trying to make a buck off you in this field. Some are downright dishonest, some are offering products that really don't stand up when you put a spotlight on them. And if you do sign up be sure the company offering them is the right one (i.e. do they come directly from the card issuer?). If not, contacting the card company to be sure the cards are authorized.
*Do you need credit card protection? For example, many people have been duped into buying protection in case their card is stolen. Federal law already protects card users. Consumer liability is capped at $50, and it is rare to have a credit card company even ask for that money if you have promptly reported the card missing or stolen.
*Beware the advanced fee requirement. Scammers usually promise credit cards with some pretty good sounding terms, and the way you get that card is via an advanced fee which they ask for to help with the paperwork or "to get you preapproved" or some such line. But after you've paid that fee you won't hear from them again, and probably won't be able to find them again. The main target of advance fee scammers are people who are desperate for a card with great rates and terms, people who can usually least afford to lose money.
If your card is missing / stolen
You are supposed to report stolen or missing cards as soon as possible, or at least with 24 hours. it is the wisest practice to do just that and get on the phone as soon as you see the card is gone or the minute you see a bill with charges you never ran up.
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