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.

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!

Read the full story

Question: I have been offered by a company that it will help me to get a low-rate card for a high fee. So my question is that, Is this my only option for a low-rate card?

Answer: No, in order to get a low-rate credit card, you don’t have to pay. For reaching a national bank, you surely don’t need a middleman.

Your credit history will remain what it is. What you can do is that you can correct errors in your credit report and then you can rebuild your credit over time, but to pay someone a high fee just for the facility of having them find you a credit card is nothing but just a waste of money. Rather than that you can put that money towards your credit card bills.

People who are just concentrating on their credit card interest rates and making useless efforts of finding a low rate interest card should first review their credit reports, and they should correct any errors that might be there in the report by using the dispute process established under the Fair Credit Reporting Act. You should first do that, so you are putting your efforts in the right direction and after that you can apply for a new credit card.

Read the full story

Question: Usually I pay all my credit card bills on time, but occasionally it happens that due to some reason I miss the due date by a day or two. So my question is that are these exorbitant $35 late fees fair practice?

Answer: For this question I’m going to start out on the bank’s side. A credit card in its real sense is a line of credit. The bank has made a commitment with you that it will continue to lend you money up to your credit line, and so you have also made a commitment with your bank that you will pay them back. When you don’t pay your bill on time, the bank begins to wonder if you’re going to pay it at all. So by penalizing cardholders for late payment by them, two things are done simultaneously by the bank one is that it trains you to make timely payments and the other is that doing this it gets periodic affirmation of your commitment to repay them. OK, so negative reinforcement is not liked by anyone, and $35 is a quite expensive reminder. Particularly when the banks use a couple of late payments as an excuse to raise the interest rate on your credit card.

So what you should do now? First of all, you should make a call to the credit card company. Tell them that you have decided to move the account if they don’t revoke the late fee. That thing will work the first time, but if it is your second time then it won’t work. Then you should ask yourself that why you are late with these bills. In order to fit your monthly budget flow you may need to organize the due dates .

Read the full story