Credit Card Reviews : Read The Fine Prints
Let’s be honest; the banking industry is not exactly known for being honest and trustworthy. When it comes to credit cards, they’re definitely sneaky with the fine print. Next time you are comparing and contrasting credit card reviews, be sure to pay attention to these things:
Default APR: This is the interest rate they can raise your card to in the event you are classified as a “default” cardholder. Now the definition of that is a slippery slope; being late on payments may cause you to fall under this category. If you always pay on time, then this shouldn’t be a problem. But if you are occasionally late with payment, then check what the default APR is because it may end up affecting you.
Rewards: For most of us, the allure of “free money” in the form of cashback rebates, reward points, or frequent flyer miles is what draws us to credit cards in the first place. Usually they are upfront about how these programs work, but sometimes you have to read the fine print to find out the real deal. For example, there are some cards that give up to 5% cashback on certain categories, but once you read the fine print you discover it’s only on the first $400 spent in that category. After that, it’s only 1% or less cash back.
Grace Period: Thanks to the Credit Card Reform Act of 2009, there is now a minimum grace period of at least 21 days on purchases. Before that, some creditors were only giving you a week or two to get your payment in before interest accrued. 21 days is definitely an improvement from that, but you can do better. Credit card reviews will usually list the grace periods for each card – try and go for those that give you 25 to 30 days instead.
Customer Service: This is one of those things many of us fail to consider before applying. Customer service alone can be the differentiating factor between a bad credit card and a good one. When you call for help, do you want to be greeted by a confusing voice prompt that requires you to press a bunch of numbers and wait on hold twenty minutes before you talk to someone? Or, would you rather have a card that allows you to speak to a real human when you call, without waiting? According to J.D. Power & Associates, when it comes to customer service American Express ranks #1 and Discover ranks #2.
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