At O1ne Mortgage, we prioritize consumer education in finance and credit. Understanding the fine print in your credit card agreement is crucial for making informed financial decisions. This guide will help you navigate the often-overlooked details in your credit card terms and conditions.

Where Can You Find a Credit Card’s Fine Print?

Credit card fine print includes a range of fees, rates, eligibility requirements, and reward program rules. You can find much of this information within your credit card’s terms and conditions or cardholder agreement. Key details are often highlighted in a standardized “Schumer box” at the top of the form and in your monthly statements.

14 Fine Print Items to Review in Your Credit Card Agreement

1. Annual Fee

The annual fee is usually prominently displayed on the application and in the cardholder agreement. Some cards waive this fee for the first year to attract new applicants. If you decide the annual fee isn’t worth it, you can close your card before your cardholder anniversary to avoid another charge.

2. Purchase Annual Percentage Rate (APR)

Your card’s purchase APR determines how much interest accrues on your credit card’s purchase balance. You can avoid accruing interest by paying your bill in full each month. However, if you carry a balance, interest will start to accrue on the amount carried over from the previous billing cycle.

3. Penalty APR

A penalty APR is a higher APR that may apply if you miss a payment. Initially, it might only apply to new transactions, but if you fall 60 days past due, it can also apply to existing balances. Setting up automatic payments can help you avoid this.

4. Cash Advance APR and Rules

Your credit card may charge a different interest rate for cash advances, which often starts accruing immediately and is higher than the standard purchase APR. Review the fine print to understand what your card issuer considers a cash advance.

5. Balance Transfer APR

Credit cards may have a separate APR for balance transfers. Often, the standard APRs are the same for balance transfers and purchases, but your rates could differ if you receive an intro APR offer on a new balance transfer credit card.

6. Intro APR Offers

New credit cards may offer promotional introductory APRs on purchases, balance transfers, or both. Review the requirements and terms for these offers, such as the timeframe for completing balance transfers to qualify for the intro APR.

7. Deferred Interest Offers

Some credit cards, particularly store cards, offer deferred interest. Unlike other intro APR offers, if you don’t pay off the entire balance during the promotional period, you get charged all the retroactive interest that would have accrued since you opened the card.

8. Balance Transfer Fee

Credit cards generally charge a fee for each balance transfer, often around 3% to 5% of the amount transferred. Review your card’s terms to see what the fee is and when it applies.

9. Foreign Transaction Fee

Foreign transaction fees may apply when you use your credit card outside the U.S. or purchase something online in a foreign currency. These fees are often around 3% of each transaction amount, though some premium and travel cards don’t have them.

10. Uncommon Fees

In addition to common fees, review the fine print for uncommon fees such as charges for requesting a physical copy of your bill or making payments by phone. These fees are more prevalent on credit cards that don’t require a good credit score.

11. Intro Bonus Terms

Intro bonus offers can be enticing, but review the fine print to ensure you qualify and can meet the requirements. For example, you might not be eligible if you received a welcome offer for a similar card within the last few years.

12. Reward Program Category Rules

Card issuers may have different definitions for reward categories like travel, dining, gas, and groceries. Review the fine print to understand what purchases qualify for bonus rewards.

13. Statement Credit Rules

Some credit cards offer statement credits to offset certain purchases. Read the fine print to see what qualifies as an eligible purchase and how the benefit works, such as whether you receive a monthly or annual statement credit.

14. Additional Cardholder Benefits

Credit cards may offer various purchase and travel benefits. Understand how these work so you don’t assume you have protection when you don’t. For example, rental car insurance often only covers damage or theft of the rental car.

Compare Your Credit Card Offers

Comparing different credit cards and offers can help you find the best option. Review the fine print to determine which card makes the most sense for you. At O1ne Mortgage, we are committed to helping you make informed financial decisions. For any mortgage service needs, call us at 213-732-3074. Our team of experts is here to assist you.