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March 18, 2013


Choosing a Credit Card

Can I avoid paying a finance charge?

Many credit cards offer a grace period for prepayments, which is the time between the end of the billing cycle and the date that you must pay the entire bill to avoid paying a finance charge. It is usually between 20 and 25 days. The grace period is shown on the disclosure statement.

Note that the full balance must be paid each month to avoid finance charges and that the grace period applies only to purchases. If you obtain a cash advance on your bank credit card, you will almost always pay finance charges from the date of the advance and probably a cash advance fee as well.

>>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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