With all the pre-approved offers consumers receive, choosing the right credit card can be confusing. Here are a few things to watch for before accepting an offer.
- Finance charges. Those teaser rates may be very tempting, but read the fine print. What Annual Percentage Rate (APR) will you pay when the introductory rate expires? Does the introductory offer cover both new purchases and transfer balances? Are there circumstances that will trigger losing the low interest rate before it would normally expire (i.e. late payments, required new purchases)?
- Grace period. Many card companies give you a 20-25 day grace period — the number of days you have to pay your bill in full before starting to pay interest on purchases — but some have no grace period at all.
- Late charges and other fees. These fees can add up. Know what you’ll pay if your payment is late, if you transfer balances, take out a cash advance or exceed your balance.
- Universal default clause. More and more card companies now have a provision that allows them to raise your interest rate without warning if you’re late with a payment.
Check out the terms and conditions on TFCU’s credit cards. We think you’ll be pleasantly surprised.