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Thanks to the internet, you can find dozens, if not hundreds of credit card companies, some with many plans terms and rates. You can also find in-print advertisements in business and personal finance magazines, in newspapers and in direct mail campaigns. In order to determine the current information on any company which tenders a credit card offer, you can contact the company directly either by telephone, mail, or through a web site on the internet.

Federal law mandates the form which applications and solicitations for credit cards must display. Even the disclosure box is required. The minimum items which must appear in the disclosure table includes all of the following:

ANNUAL PERCENTAGE RATE (APR) FOR PURCHASES
This is the interest rate which will be applied to your account in the event that you do not pay off your balance each month. Sometimes cards will have both an introductory rate and a 'permanent rate'. In this instance you will see both rates displayed, as well as the time frame when each is effective.

OTHER APRs
Credit card companies are requires to list any other fees which apply to the credit card account in the same format, i.e. as the annual percentage rate. Examples of other APRs include cash-advance APR, balance transfer APR and penalty rate APR.

The penalty might be for something such as two or more late payments in a certain time period.

The cash advance APR applies when you use your credit card to withdraw cash from your credit card account. The balance transfer applies if you make a request to transfer a balance from one card to another.

This usually applies if you are switching your account to a card which has a lower interest rate.

VARIABLE RATE APR

A variable rate APR applies on some cards which calculate the interest rate based on the Prime Rate plus a standard percentage. Usually further information will be provided as to how the Prime Rate is determined, i.e. the rate published by the Wall Street Journal on the 10th day of the month.

GRACE PERIOD
The number of days after purchase using the credit card before the purchase is charged credit card interest. On an average, this is 25 days.

BALANCE COMPUTATION METHOD
This is often the average daily balance excluding purchases which are within the grace period. It applies if you are carrying over a balance and incurring a finance charge on the amount of the balance.

ANNUAL FEES
Some credit card companies charge you for simply having a credit card account with them.

MINIMUM FINANCE CHARGE
If you carry over a balance from month to month, there is usually a minimum charge assessed, often fifty cents. This is to protect the credit card issuer from adding a penny or two in interest on a small balance.

Typically, in addition to or in place of APRs, the card holder will be assessed fees for cash advances, over-limit, balance transfers or late payment fees.

Gus Taperman holds a Bachelor’s degree in Commerce and completed his master’s in Business Administration . He is working as writer and financial consultant to find a Personal loans, Debt consolidation, home equity loans at cheap rates visit www.taperman.com

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