WHERE TO FIND INFORMATION

ABOUT CREDIT CARDS

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You can find lists of credit card plans, rates, and terms on the Internet, in personal finance magazines, and in newspapers. The Federal Reserve System surveys credit card companies every six months. You値l need to get the most recent information directly from the credit card company--by phoning the company, looking on the company痴 web site, or reading a solicitation or application.

Under federal law, all solicitations and applications for credit cards must include certain key information, in a disclosure box similar to the one shown below:

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Annual percentage rate (APR) for purchases	2.9% until 11/1/06 after that, 14.9%
Other APRs	Cash-advance APR: 15.9% Balance-Transfer APR: 15.9% Penalty rate: 23.9% See explanation below.*
Variable-rate informtion	Your APR for purchase transactions may vary. The rate is determined monthly by adding 5.9% to the Prime Rate.**
Grace period for repayment of balances for purchases	25 days on average
Method of computing the balance for purchases	Average daily balance (excluding new purchases)
Annual fees	None
Minimum finance charge	$.50
Transaction fee for cash advances: 3% of the amount advanced Balance-transfer fee: 3% of the amount transferred Late-payment fee: $25 Over-the-credit-limit fee: $25
* Explanation of penalty. If your payment arrives more than ten days late two times within a six-month period, the penalty rate will apply. ** The Prime Rate used to determine your APR is the rate published in the Wall Street Journal on the 10th day of the prior month.

Explanations:

APR for purchases. The annual percentage rate you値l be charged if you carry over a balance from month to month. If the card has an introductory rate, you値l see both that rate and the rate that will apply after the introductory rate expires.

Other APRs. The APRs you値l be charged if you get a cash advance on your card, transfer a balance from another card, or are late in making a payment. More information about the penalty rate may be stated outside the disclosure box--for instance, in a footnote. In this example, if you make two payments that are more than ten days late within six months, the APR will increase to 23.9%.

Variable-rate information. Information about how the variable rate will be determined (if relevant). More information may be stated outside the disclosure box--for instance, in a footnote.

Grace period for repayment of balances for purchases. The number of days you値l have to pay your bill for purchases in full without triggering a finance charge.

Method of computing the balance for purchases. The method that will be used to calculate your outstanding balance if you carry over a balance and will pay a finance charge.

Annual fees. The amount you値l be charged each twelve-month period for simply having the card.

Minimum finance charge. The minimum, or fixed, finance charge that will be imposed during a billing cycle. A minimum finance charge usually applies only when a finance charge is imposed, that is, when you carry over a balance.

Transaction fee for cash advances. The charge that will be imposed each time you use the card for a cash advance.

Balance-transfer fee. The fee that will be imposed each time you transfer a balance from another card.

Late-payment fee. The fee that will be imposed when your payment is late.

Over-the-credit-limit fee. The fee that will be imposed if your charges exceed the credit limit set for your card.

 

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