The Right Way to Fill out a Credit Card Application (cont.)
Contributed by Deborah Zeitler
Is that APR fixed, or variable? If it's variable, the interest rate you see could change drastically depending on the prime rate, which is set by the Federal Reserve. If you don't pay your balance in full each month, the extra finance charges you would pay over several years time could literally end up to be thousands of dollars, depending on the amount of your balance.
Federal laws concerning credit card applications
Under Federal law, credit card companies are required to have certain information included on their applications to help you determine what the finance charges will be on that card. There are now many good web sites on the Internet which help consumers understand all the terms they'll find on a credit card application.
What to do when you receive your credit card in the mail
After your application is approved and you receive your card in the mail, be sure to keep all of the accompanying literature you receive with it in a separate file that you create for your card. It will contain all of the information (in fine print! ) you would need if you ever have a dispute with your credit card company about a purchase. And then, go shopping!
