Simple Credit Cards - What you should know...
A credit card is primarily a convenient payment mechanism. It is
not intended to be a long term credit facility. Should you
require long-term financing, you may wish to consider
alternative financial products.
5 Questions you should ask yourself-
1. Why am I applying for this card?
2. Can I pay for the purchases in full each month? Or do I
intend to pay the minimum sum required and rollover my payment?
3. If I do rollover my payments, do I have the capacity to pay
the accompanying charges?
4. Do I understand the terms and conditions for the use of the
card? For example, do I know what are the various fees,
interest, finance charges and penalties that accompany the use
of the credit card?
5. What action can the bank take if I fail to settle my overdue
payment?
10 Questions you should ask the bank:
Membership Fees 1. When will the promotional free membership
period, if any, expire? What is the fee I will have to pay after
the expiry period?
Payment 2. What is the minimum amount I have to pay each month?
3. How much interest do I have to pay on the outstanding amount?
4. If I do not make the minimum payment for one month, what are
all the interest and other charges that I will have to pay?
5. What are the charges I will incur if my payment, either by
cheque or GIRO, is returned for whatever reasons?
Cash Advances 6. If I take a cash advance from my credit card
line, what are the charges that I will have to pay?
Loss of Credit Card 7. If I lose my credit card, what must I do?
8. If I lose my credit card, what are my liabilities for
unauthorized purchases?
Credit Limit 9. What is my credit limit?
Changes in Terms and Conditions 10. If there are any changes in
the terms and conditions of the use of the card, will I be
informed of these changes? If do, when will I be informed of
these changes?