Tag Archive | “credit card agreements”

Costs and Fees: FAQs About Credit Card Fees Part 4

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Question: I’m searching for such a credit card that I have decided to use on special occasions and pay off the balance monthly. So what will be that card which is the best choice for avoiding hidden fees and clauses?

Answer: If you are planning that you will pay off the balance every month, then now you should be less concerned about the interest rate and you should have more concern about the grace period before which card company start charging you interest on your purchases.

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Credit card agreements aren’t written as a rigid agreement. There are fluctuations in variable rates with changes in the Fed Funds rate, but so can rates on a fixed-rate card. The terms and conditions can be changed by card companies as needed to remain competitive with other credit card issuers. If you don’t like the way how a credit card issuer has changed the terms on your card, then you can vote with your feet and find a new card to for yourself. You can shop for a new card on bankrate.com. Wish you Good luck!

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Costs and Fees: FAQs About Credit Card Fees – Part 1

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In this series of articles I have tried to answer some FAQs about credit card fees. Lets have a look at the questions related to credit card fees that are frequently asked by the borrowers.

Question: My credit card interest rate has been raised up to 29.99% when I was late paying the bill. So my question is that what is the maximum allowable APR on credit cards?

Answer:  This misconception is popular among the people that state usury laws protect borrowers from high interest rates on their credit card debt.

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In 1978 Credit card issuers have gained a great victory when the Supreme Court ruled in Marquette vs. First Omaha Services that for nationally-chartered banks it was legal to export the more costly terms of their cards to those states where the laws regarding interest rates restricted such practices. It is  required for the credit card issuer that he only have to follow the law of the state in which its credit card operations are located, and there is no need for him to follow the laws of the cardholder’s state of residency.

After that the Supreme Court has issued this ruling, credit card issuers have moved to states with permissive credit policies like South Dakota and Delaware.

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