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March 18, 2013


Choosing a Credit Card

Is there a charge each year for the right to use a credit card?

Whereas few, if any, credit cards issued by retailers have annual fees, some credit cards issued by financial institutions have annual fees. These may range from $15 to $25, and perhaps $35 to $60 for "premium cards" that provide a higher line of credit. (And charge accounts, such as American Express or Diners Club, have annual fees that probably exceed annual fees charged for bank cards.) If you usually pay your credit card accounts in full each month and do not expect to pay a finance charge, you should shop for a credit card with no annual fee or one that is low. However, if you often don't pay the balance in full each month, then a low APR may be better for you than a low annual fee. A credit card solicitation must disclose any annual or other periodic fee, and certain other fees if they are imposed.

>>What information do I have a right to?
>>How should I judge the APR shown in the solicitation?
>>Can I avoid paying a finance charge?
>>Does the APR on a credit card always stay the same?
>>Is there a charge each year for the right to use a credit card?
>>What other fees and charges should I look for on the disclosure statement?
>>In shopping for a credit card, I found that one credit card issuer charges a higher rate than that allowed by my state law. How can that be?

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