credit cards etc..?

Question

Do you think most people know enough about the terms of their credit cards?Does it matter?What are the risks of this lack of knowledge?

If you decide to get a credit card what fo you need to know before choosing a particular card?

Answer 1

Most people don't have a clue about the terms . The small print is too small to read. If you want one make sure that it suits you in every way. Make sure you are familiar with the interest and charges.

Answer 2

I don't think most people do and yes it does matter. Credit card issuers in the U.S. recently are facing heightened scrutiny from Gov't regulators for potentially unfair practices...I recall reading an article recently about one gov't hearing where the credit card execs who were asked to defend their practices had to admit that they don't even fully understand their disclosures. For those that use credit wisely and payoff their balance each month the most important terms to compare between cards are the perks (frequent flier miles, cash rebates etc.) People who are unfortunate enough to carry a balance however need to be a litlte more diligent rather than simply focusing on the stated rate. For example, one of the more recent changes taking place in the industry that is quickly becoming an industry standard is the right for the card issuer to raise your rate if you are late on any of your loans (not just the card itself). That 2.9% intro APR on your credit card could jump to 20%+ overnight if you are late on your car payment. Sounds unfair but if you have a credit card it's probably buried in the fine print somewhere along with the crazy explanations as to how they calculate your interest.

Answer 3

First of all, you need credit cards. Without credit cards you won't be able to get a car loan, and without a car loan you won't be able to get a mortgage. You need to build credit so banks and lenders can trust you.

Most important terms to know are the APR. That's basically how much interest you'll pay, and if there is an annual fee. You shouldn't have to pay to use a credit card.

Learn more about credit, mortgage, and personal finance:

http://www.thetruthaboutmortgage.com

Answer 4

I think most people don't read ALL the fine print in the agreement, but I hope most know their interest rates, and payment schedules, what happens if they're late on a payment, etc.

Yes, it does matter. People who don't take time to find out about what they're agreeing to can get into a lot of financial trouble.

What was most important for me was finding out what interest rates are, and what fees are applied, if any.

Answer 5

You do need to know one thing.......UNIVERSAL DEFAULT.....most credit cards have this in their fine print....

Scew up w/ one card and the others find out (via random credit checks).....they will hike your interest rates thru the roof immediately.....They will also hike your rate if you have used "too much" of your total available credit....

You also need to choose "quality" credit cards vs. bottom feeder cards.....the "wrong" type of credit can hurt your FICO score. Stay away from dept store cards/jewelry/gas/etc.

If you can't pay it off in full EACH AND EVERY MONTH....don't get one.

Answer 6

I personally look at the annual percentage rate and if there is an annual fee or not. NO, not enough people know enough about credit cards period. They are the work of the devil.

Answer 7

Never get credit cards. You are dealing with snakes and will get bitten.
Pay cash or use your debt card.
Remember. the borrower is slave to the leander.

Answer 8

Terms of the agreement.