You wouldn’t choose a mortgage lender without fully understanding the agreement the two of you establish.
The same goes for a credit card.
Understanding a credit card’s specific terms will help you make the best financial decisions.
Here are 4 credit card terms you may encounter on your agreement:
1. APR: The annual percentage rate is the interest rate you pay each month.
2. Set-up and maintenance fees: Some credit cards may charge an annual, one-time or monthly fee. They vary from card to card.
3. Transaction fees: These include balance transfer, foreign transaction and cash advance fees. They are the costs you may pay for transactions other than purchases.
4. Billing cycle: A billing cycle is the number of days you have between the close of the billing cycle and when the payment is due. This is usually 25 days.
For more terms to know, read the full blog post here.
What are some aspects of a credit card that you think most people forget about that are important to understand?
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blogand CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.