A credit card is primarily a convenient payment mechanism. It is not intended to be a long term credit facility. Should you require long-term financing, you can wish to consider alternative financial products.
5 Questions you should inquire of
yourself-
1. Why am I applying for this card?
2. Can I pay for the purchases in full each month? Or do I intend to pay the minimum sum required and rollover my payment?
3. If I do rollover my payments, do I have the capacity to pay the accompanying charges?
4. Do I understand the terms and conditions for the utilize of the card? For example, do I understand
what are the various fees, interest, finance charges and penalties that accompany the use of the credit card?
5. What action may the bank take if I fail to settle my overdue payment?
10 Questions you should ask the bank:
Membership Fees
1. When will the promotional costless membership period, if any, expire? What is the fee I will have to pay after the expiry period?
Payment
2. What is the minimum amount I have to pay each month?
3. How much interest do I have to pay on the outstanding amount?
4. If I do not build the minimum payment for one month, what are all the interest and other charges that I will have to pay?
5. What are the charges I will incur if my payment, either by cheque or GIRO, is returned for whatever reasons?
Cash Advances
6. If I take a cash advance from my credit card line, what are the charges that I will have to pay?
Loss of Credit Card
7. If I lose my credit card, what must I do?
8. If I lose my credit card, what are my liabilities for unauthorized purchases?
Credit Limit
9. What is my credit limit?
Changes in Terms and Conditions
10. If there are any changes in the terms and conditions of the use of the card, will I be informed of these changes? If do, when will I be informed of these changes?
