Released on = March 19, 2007, 1:53 pm

Press Release Author = Art Taylor

Industry = Consumer Services

Press Release Summary = Credit cards are great tools for financial management.
Still, it can be difficult to know what legal agreements pertain to credit card
usage. So, let us talk about that.


Press Release Body = Have you ever tried to read all of the cardholder agreements
for your credit cards? Most people do not. It is simply too much to handle. Those
agreements are written in an unintelligible language, and unless you are an
attorney, it is too difficult to interpret. Plus, the information is squeezed
together into a small print that is barely readable. Of course credit card companies
do not want you to read it. They would rather you know very little of what is
written in those legal agreements. However, it is of great importance that you know
the key terms of the agreement, which explains how your balance is computed and what
is responsible for fees or interest rate increases.

Knowing the terms of your credit card agreement will assist you in comparing cards,
knowing when you should change to a new card, and help you to save money by working
the system. Therefore, let us start by listing a few key terms used in credit card
agreements and explain what they mean:

Pre-approved - You have probably received an offer in the mail stating that you have
been "pre-approved" for a credit card. This is a misleading, common, practice of
credit card companies, as you have not been pre-approved for anything. Mostly
pre-approved means you have met some initial guidelines pertaining to your
creditworthiness. To receive a pre-approved credit card notice does not guarantee
you will be approved for the card if you choose to apply for it.

Annual Fee - Simply put, many credit cards have a yearly membership fee attached to
their usage. Usually, the charge ranges from approximately $25 to $75, but there are
premium cards which charge as much as a few hundred dollars.

Transaction Fee - If you are going to use your credit card for transactions other
than purchases, such as balance transfers and cash advances, credit card issuers
usually charge a transaction fee. The card issuers will sometimes waive these fees
for new cardholders as part of an introductory offer. The transaction fee is
typically calculated as a percentage of the transaction amount. There are card
issuers who maximize the fee at a certain dollar level; however those card issuers
are rapidly disappearing.

Grace Period - If a credit card has a grace period of 21 days, it means card
interest will not begin accruing for 3 weeks, as long as you paid your balance in
full the previous month. Using a credit card grace period to your advantage will let
you avoid paying finance charges by paying your balance in full before the monthly
due date. If the card has no grace period, interest will begin accruing the day you
transact with the card. Many consumers use the grace period to get out of paying
finance charges on their purchases while maintaining the convenience of using a
credit card instead of cash.

This is not all the information available on credit card agreements, at best it is
an introduction to credit card legalese. Hopefully it is of value to you.


Web Site = http://www.ecreditcardworld.info

Contact Details = Art Taylor
Unit 333
Boulder, Co. 80303
720-226-9436
http://www.ecreditcardworld.info/
Altayr19@yahoo.com