Credit Card Guide
What is a Credit Card Holder Agreement?
When ever we apply for a credit card, what are the things that we tend to look for. Some of the most common things that we tend to base our decisions on are simple plain facts that really don't mean anything unless they are put into proper context. Some of the things that we look for include the credit limit being offered, the interest rate being charged and any other benefits such as free money transfers etc. Even though many people think this is enough, this is not actually the case.
Regardless of what ever card you may decide to go ahead with, there is one legal requirement that we all are needed to fulfill; which is to sign on the dotted line stating that you have read and agree to all the terms and conditions. Even though we all end up singing these documents without having to think twice, how many of us in actual fact take out the time to read the agreement? This is what a credit card holder agreement is. It is the legal document that is required to states all the terms and conditions of the credit card by Federal Law. Some of the information that you will expect to find in the credit card holder agreement will include things like finance charges, the current APR, how certain figures are calculated, things that the company is not liable for and so on.
Even though we tend to over look the importance of such a document, we all should really take the time to read and understand as to what exactly we are agreeing to. Most people tend to realize the importance of such documents when they experience some sort of problem with their merchant provider. It is at this time they take the time to read the credit card holder agreement just to realize that they made a huge mistake. This situation is not rare as many of you may think it is. In actual fact, a recent survey showed that nearly 75% of credit card owners end up needing to read their card holder agreement due to some dispute case that has aroused. What happens in the end; the card holder ends up with a huge amount of outstanding debt that they can no longer pay.
What you have to realize about a credit card holder agreement is that most of the terminology used is mostly legal and related to the financial field. For this reason, trying to get to grips with what each and every line means could prove to be quite difficult. In such cases, you are always open to two options. You could either get a financial advisor from the bank you are applying to, to explain what the document means or you could always get a lawyer to look at it.
It is important that this process of interrogating and reading over the fine print is done before you commit your self by signing the legal document. Even though it may take a bit of time, it will be well worth the effort.
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