Prudent Money Management
Smart Money Management Resources
Stephen Lau
Double click to edit
ˇ You will be charged a minimum finance charge if there is an outstanding balance, irrespective how small the amount is.
ˇ If your balance exceeds your credit limit, you will be charged an over-the-limit fee.
ˇ Certain credit cards may charge a transfer balance fee or account closing fee.
ˇ If you pay your credit card bill by check, which bounces, you may be charged a returned check fee.
Beware of those cutthroat charges!
Smart credit card management requires you to do the following:
ˇ Pay your credit card bills on time.
ˇ Avoid unnecessary charges and fees, wherever possible.
ˇ Understand how finance charges are calculated to save your money.
ˇ Pay attention to any Notice of Change in Terms arriving with your monthly statement, and read it carefully.
ˇ Read your monthly statement carefully. Contact the card issuer immediately when you notice any discrepancy or incorrect charges.
ˇ If you pay your credit card bill by check, make sure it will not bounce, or you may be charged a returned check fee.
ˇ When you apply for a credit card, find out if the card issuer will charge a fee every time you check your balance through the customer toll free number. If there is a charge, check your balance online instead.
ˇ When you apply for a credit card, read carefully the terms and conditions that come with the offer; especially, watch out for teaser rates (extremely low introductory rates for a short period only).
ˇ If necessary, use a secured credit card to establish or rebuild your credit record.
CopyrightŠ by Stephen Lau
Return from Smart Credit Card Management to the Home Page.
ˇ If your balance exceeds your credit limit, you will be charged an over-the-limit fee.
ˇ Certain credit cards may charge a transfer balance fee or account closing fee.
ˇ If you pay your credit card bill by check, which bounces, you may be charged a returned check fee.
Beware of those cutthroat charges!
Smart credit card management requires you to do the following:
ˇ Pay your credit card bills on time.
ˇ Avoid unnecessary charges and fees, wherever possible.
ˇ Understand how finance charges are calculated to save your money.
ˇ Pay attention to any Notice of Change in Terms arriving with your monthly statement, and read it carefully.
ˇ Read your monthly statement carefully. Contact the card issuer immediately when you notice any discrepancy or incorrect charges.
ˇ If you pay your credit card bill by check, make sure it will not bounce, or you may be charged a returned check fee.
ˇ When you apply for a credit card, find out if the card issuer will charge a fee every time you check your balance through the customer toll free number. If there is a charge, check your balance online instead.
ˇ When you apply for a credit card, read carefully the terms and conditions that come with the offer; especially, watch out for teaser rates (extremely low introductory rates for a short period only).
ˇ If necessary, use a secured credit card to establish or rebuild your credit record.
CopyrightŠ by Stephen Lau
Return from Smart Credit Card Management to the Home Page.
Smart Credit Card Management
by Stephen Lau
Credit Cards
Credit cards are authorization cards to buy on credit. They are the most frequently and widely used form of credit. Smart money management requires knowing and understanding the full cost of a credit card.
Types
ˇ Charge cards: They generally do not charge any interest, but may have to be paid in full at the end of a short period.
ˇ Credit cards: They offer an open line of credit, allowing you to pay at your own pace, with a minimum payment. You can immediately borrow again from the amount you have just repaid (known as revolving credit).
ˇ Secured and unsecured credit cards: Most credit cards are unsecured, meaning a lender cannot take your property upon non-payment. A secured credit card, on the other hand, is made available through a bank, with monetary deposit as security, for people with poor or no credit.
ˇ Debit cards: They provide convenience of a credit card but without interest charges or credit: you simply pay as you go along.
Interest Rates
ˇ Most credit cards charge a fixed interest rate, which is the annual percentage rate (APR) divided by 12 months. That is, if your fixed rate is 18 percent, you will be charged 1.5 percent of the outstanding amount per month.
ˇ A variable interest rate means the rate can change after an introductory period or a late payment. Watch out for the fine print in the credit agreement!
by Stephen Lau
Credit Cards
Credit cards are authorization cards to buy on credit. They are the most frequently and widely used form of credit. Smart money management requires knowing and understanding the full cost of a credit card.
Types
ˇ Charge cards: They generally do not charge any interest, but may have to be paid in full at the end of a short period.
ˇ Credit cards: They offer an open line of credit, allowing you to pay at your own pace, with a minimum payment. You can immediately borrow again from the amount you have just repaid (known as revolving credit).
ˇ Secured and unsecured credit cards: Most credit cards are unsecured, meaning a lender cannot take your property upon non-payment. A secured credit card, on the other hand, is made available through a bank, with monetary deposit as security, for people with poor or no credit.
ˇ Debit cards: They provide convenience of a credit card but without interest charges or credit: you simply pay as you go along.
Interest Rates
ˇ Most credit cards charge a fixed interest rate, which is the annual percentage rate (APR) divided by 12 months. That is, if your fixed rate is 18 percent, you will be charged 1.5 percent of the outstanding amount per month.
ˇ A variable interest rate means the rate can change after an introductory period or a late payment. Watch out for the fine print in the credit agreement!
Charges and Fees
ˇ Some credit cards charge an annual fee, which can be range from $10 to $100.
ˇ You may be charged a cash advance fee, which is usually one to three percent of the amount advanced. In addition, your interest rate may also go up immediately.
ˇ Some credit cards may require you to use your card, or else you may be charged an inactivity fee.
ˇ Most credit cards charge a late payment fee if payment is received beyond an agreed due date.
ˇ Some credit cards charge an annual fee, which can be range from $10 to $100.
ˇ You may be charged a cash advance fee, which is usually one to three percent of the amount advanced. In addition, your interest rate may also go up immediately.
ˇ Some credit cards may require you to use your card, or else you may be charged an inactivity fee.
ˇ Most credit cards charge a late payment fee if payment is received beyond an agreed due date.
The No.1 principle of smart money management is to shop around for the best credit card deal. "On average, the typical credit card purchase is 112 percent higher than if using cash" - Card Web
The Americans pay an average of 18.9 percent interest on a credit card.
If you think you have been paying more than you should, look for a smart low-interest credit card!
Click here to apply
The Americans pay an average of 18.9 percent interest on a credit card.
If you think you have been paying more than you should, look for a smart low-interest credit card!
Click here to apply
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |