Credit cards and obscure details in your billing statement

The bank card industry is a profitable one, and you can quickly add to their profits by failing to look over the fine print that accompanies your bill every month. Be careful when you use your charge card, or your fees and interest rate could climb dramatically.

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The typical American family carries 19 different credit and debit cards. In today's financial climate, keeping at least one major charge card is important; you cannot, for instance, rent a car without one. Credit cards are generally safer than using cash, they provide a simple way to buy things on the Web, and they help buyers to make purchases for which they don't currently have cash available.

A large number of charge card companies provide such features as a "permanent" low rate of interest, or a "free" transfer of balances from other cards, or how easy it can be to apply for a cash advance, or the "0%" promotional rate offered to new customers. The major credit card companies are eager to show you their favorable features.
 

If you are careless, a charge card can be a particularly expensive financing tool. What the credit card companies seldom mention is the many charges that could wind up on your bill if you do not examine the terms in detail.

Here are a few items you may not be aware of that could come in handy:

• If your bill says that the payment is due at 11 AM, Eastern time, then it is regarded as late if it arrives after that time, even if it shows up later that day. A late payment means anytime after the precise time the bills are stated to be due. Late fees can apply if your bill arrives late, even if your payment arrives on the due date. Late penalties add up, and are commonly as much as $39.
• There is no "permanent" rate, no matter what your bank card company may claim. If they wish to keep your rate low for a long time, be thankful. The fine print on your bill often claims that the issuer may raise your rate at any time, for any reason, provided that they give you 15 days notice. A "permanent" interest rate is permanent only until the issuer decides that they want to raise your rate, at which point "permanent" becomes temporary.
• Be careful when transferring balances to a different credit card; it might cost you hundreds of dollars. If a balance transfer is treated as a cash loan, you will not have a grace period. There may be a fee for a balance transfer, and it may be regarded as a cash loan, which comes with higher fees and rates than for purchases. While card issuers like to promote their balance transfer programs, do not assume that moving the $5000 balance over from one of your other bank cards will cost nothing.
• Rates on cash loans accumulates beginning the minute you remove the cash out of the Teller machine. There is no grace period for cash advances. Your are free to use your bank card to get funds from a Teller machine, but a charge will apply, as will a rate that will be considerably higher than for purchases.

Be careful when using your plastic; it could cost you a lot more than you anticipated. These are but a few of the items one has to watch out for when using a major charge card.