Credit Cards
Understanding Your Credit Card Statement
The Back of Your Statement
The fine print on the back of your credit card statement
is also packed with very important information. Remember, proper credit card management will benefit you. Here are some points
you should look for:
Cash Advance Fee
This fee is charged if you use your credit card for a cash advance. This may be
a flat fee or a percentage of the cash advance.
The interest that is associated with cash advances is usually higher than the rate
you pay on purchases you ordinarily make with your credit card. And you will probably be paying off that higher interest rate until you pay your credit card bill in full.
To ensure good credit card management, try to avoid taking cash advances from your
credit card.
Lost or Stolen Cards
As soon as you realize your credit card has been lost or stolen report it immediately.
A number to call is on the back of your credit card statement. If you contact the
credit card company before the thief uses it, you will not be responsible for these
charges. If you do not, you will be responsible for the first $50 of charges.
As part of proper credit card management, be certain to read the cardholder agreement
or yearly
disclosure statement that comes with your credit card to learn more about
lost or stolen cards. If you phone your creditors about a lost or stolen card, document
the important information regarding the card and save it so you will have it for
future reference.
The situation changes dramatically if a family member or someone you know uses your
card without your permission. You will then have to take legal action against them
to have the unauthorized charges eliminated from your account.
Other Fees
Some credit card companies charge a fee if you pay by telephone. They may
also charge a fee to cover the costs of reporting to credit bureaus, reviewing your
account, or providing other customer services. Read the information in your credit
card agreement to see if there are other fees and charges.
Credit Card Ownership
When you take ownership of a credit card you are taking
on a financial risk. Educate yourself so you minimize the risk – learn about the
credit card by reading your monthly statements. Be diligent. If you start to lose
interest in your credit card statement and do not practice proper credit card management,
it could be very damaging to your personal financial situation.
Consolidated Credit Counseling Services Can Help
If you are struggling to keep up with your minimum payments on your
credit cards and your financial problems are affecting other areas of your life,
debt consolidation may be the solution for you.
You can get a Free Budget & Debt Analysis here, and you can speak with one of
Consolidated Credit Counseling Services certified credit counselors. They will help
you determine if credit counseling is the right option for you.
