Useful information about financial products and debt management
- http://www.consumerfinance.gov - this is an official website of the United States Government and here you can find useful information on financial products such as loans as well as read educational articles on personal finance.
- https://www.ftc.gov/about-ftc/bureaus-offices/bureau-consumer-protection - this website is provided by the Federal Trade Commission and here you can find information on consumer rights and protection, find laws and legislation that complies with consumer protection and file a complaint if necessary.
- https://www.consumer.ftc.gov/topics/dealing-debt - this website is provided by the Federal Trade Commission and here you can find information on debt problems, debt counselling, debt collection and other debt-related topics as well as receive helpful information and tips on other finance-planning topics.
- https://www.nclc.org/ - this website is provided by the National Consumer Law Center and here you can find information on consumer rights and protection, find laws and legislation that complies with consumer protection.
Warning! If you do not meet the repayments on your credit agreement, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future!
Credit cards allow you to borrow money up to a certain limit as long as you make regular minimum repayments. Most credit cards have an annual fee.
Before you apply for a credit card:
- - choose the right type of credit card for you;
- - different cards have different features, for example, reward points;
- - choose the right credit limit for you;
- - make sure that there are not high monthly fees;
- - take a look at your budget, decide carefully whether you will be able to make repayments;
To be eligible to apply, you must:
- - have a regular income;
- - meet the minimum income guidelines;
- - be at least 18 years old;
- - have a positive credit history.
Make sure you have all the necessary paperwork credit card issuer may ask you
- - Proof of income - payslip, tax return report etc.;
- - Information about your current income and expenses;
- - Copy of your bank statement that shows your savings and other made repayments;
- - Passport or drivers licence.
Main features of credit cards:
- - Reward points: these types of credit cards gives you reward points that can be redeemed for gifts or other goods;
- - Cashback cards: you can get certain amount of money back, this depends on how much you have charged from your credit card;
- - Travel miles: these types of credit cards gives you mile points, which can be used to make travel related purchases, for example, plane tickets;
- - Petrol: these types of cards offer you to get petrol related benefits.
Fees and charges
- - Application or processing fee: some credit card issuers may charge this fee when you sign up for a credit card;
- - Annual Fee: some credit card issuers may charge you with annual fee. Annual fee is set by the credit card issuer. Keep in mind that exclusive credit cards usually are design for people with higher income and such credit cards are more expensive;
- - Foreign Transaction Fee: this fee can be charged for transactions that are processed outside of the USA;
- - Cash Advance Fee: if you withdraw cash from ATM machine you have to pay additional fee for the withdrawn amount;
- - Late payment Fee: you may be charged interest if you fail to repay money borrowed from the credit card.
Credit card minimum repayments
If you make only the minimum repayment on your credit card each month, you will pay more in interest and it will take longer to pay off your balance. Your monthly statement must give you information about how long it will take to pay off the entire balance by making minimum repayments.
Credit card interest rates
Credit cards tend to have higher interest rates than other forms of credit, and the rate can vary depending on what features the card offers. You are charged interest on all outstanding transactions if you don't pay your full balance each month.
If you have a credit card without an interest-free period, you pay interest either from the day you make a purchase or from the day your monthly statement is issued.
Unless you use a card that is interest-free and fee-free, buying items with a credit card will always cost you more than if you pay with cash.
MoneyGuru24 is not a bank, lender, broker or product issuer. MoneyGuru24 is not owned by a financial institution but is an independent company owned by private shareholders. All information provided on MoneyGuru24 has general and informative nature. Although MoneyGuru24 covers wide range of loan products and providers, keep in mind that those are not the only options available in the market and may not be the best fit for you. We do not consider your personal circumstances and financial situation and we are not recommending any particular products. If you choose to apply for a loan product through MoneyGuru24 website you will be dealing directly with the loan provider not with MoneyGuru24. It is recommended for you to read all relevant documentation given by the loan provider before accepting any financial product offer.