Wednesday, July 11, 2007

Credit Cards - What you should know

A slip was given to us whenever we applied for a credit card. You might be too busy to read through the slip. Let me summarise what in it...

A) Remind you that Credit card in not to be used as a long term credit facility

B) The 5 Questions you should ask yourself
1) Why I apply this card?
2) Can I pay in full every month?
3) If I rollover, can I pay the charges?
4) Do I know the terms and conditions for using the card? Eg, Late penalties, interests, etc
5) What bank can do if I fail to settle my overdue payment?

C) The 10 Questions you should ask the bank
1) What is the membership fee? If under promotion, when will it end?
2) What is the minimum payment every month?
3) What is the interest on outstanding amount?
4) What interest and charges if I did not settle my minimum amount?
5) What charges if my payment, via cheque or Giro fails for whatever reason?
6) Can I take cash advance on my Credit Lines? What charges I have to pay?
7) What if I lose my Credit Card?
8) If I lose my credit card, what are my liabilities for unauthorised purchases?
9) What is my credit limits?
10) Will I be informed on any change in terms and conditions for usage of the card?

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