by Renee Ruby

Created on: March 02, 2009

Read the Disclosure

Whether you already have a credit card or are shopping for one don't just skim over the disclosure. Don't get caught up by the fancy advertising and enticing wording of the overview or the simple terms located on the front of your statement, dig deeper. Thoroughly research the offers. What they aren't telling you up front may be very important. The reason there is so much information in a disclosure is because the Fair Credit and Charge Card Disclosure Act, designed to protect you, requires creditors to provide you with certain data on a regular basis. You should understand why the information is provided to you and how valuable it is when you can make decisions about using credit.

What Information the Disclosures Give You

When you receive credit card statements from banks and retailers, you will find interest rate and fee schedule information in an obvious location. By looking at the disclosure statements you also should find:

*Annual fee the yearly charge for having the credit card

*Annual percentage rate (APR) the yearly interest rate charged

*Monthly periodic rate APR divided by 12, or the rate at which monthly interest is calculated

*Daily periodic rate APR divided by 365, or the rate at which daily interest is calculated

*Finance charge the total cost of having the credit card, including interest and fees

*Transaction fee charges to use various services, such as receiving a cash advance or using an ATM

*Late payment fee the charge for when payment is not received by the due date

*Over the limit fee the charge placed on the account when the credit limit has been exceeded

*Grace period the time between transaction date and the due date where interest can be avoided

*Minimum payment the minimum monthly amount accepted by the creditor for the payment

Disclosure Details You Should Look For

If you are shopping for a credit card there are more things you need to consider and compare before you decide. Card companies put all the features and benefits where it is easily found. The features and benefits of cards that offer rewards are especially emphasized. However, there are other details that should be considered. Additionally, if you already have a credit card you should read the disclosures on every statement and check for changes, you also should pay special attention when you receive a disclosure statement sent to you on its own. If it comes by itself then there are important changes.

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Annual Percentage Rate (APR) - In addition to the APR on

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