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Basic Credit Card Terms and Conditions

Every time you purchase credit card with cash back credit, you usually get cash back on any amounts taken directly from the credit card itself. Here’s a partial list:

1) Annual Percentage Rate (APR) or other exchange rate accounting or balance transfer fees.
2) Interest rate transfer fees.
3) Issuance and access to a credit card account for later use.

And finally, the bottom line: it is easy to access credit card statements and credit card balance transfers from different sources, therefore it is essential for you to do your due diligence and read all the information about credit card offers and the terms and conditions carefully. Credit card holders deserve to know not only what they get but also what it should cost them, how it works, what charges if any are below the standard rate, and how much you pay once the transfer is applied.

1. What is the Average Rate?

Exactly what interest rate you should expect to pay depends on your credit card issuer. The best comparison for credit card issuers is between Discover’ and Morgan Stanley is Atelier Belge, France.

In a nutshell, on cash back credit, a credit card issuer offers you free purchases at selected retailers and can use the card to pay back purchases you incur from those stores at a convenient rate. The lower a card’s rate, the more money you’ll save by paying back products you buy online. On the other hand, if a credit card company offers low or 0% interest rates, it means you’ll be paying back a fixed amount that may prove to be lower, depending on your balance amount. With Discover’s card, for example, this rate may be 10%, while with Morgan Stanley’s it may be as low as 3%.

2. How Does the Low Interest Rate Apply?

The rate that applies when you withdraw the cash back credit card money is usually 1 percent or so off. Remember, though, that there are “frictures” with 0% interest rates. For example, you may be required to pay at least the minimum payment on any balance transfer charges you incur each month while you don’t qualify for a cash back credit card. If you incur your payback of more than that amount this month, you can be charged additional fees with your new card and may be locked out of future cards.
Be sure to read all the fine print before you sign up for a card, as some credit card companies won’t even print it out until you fill it out.

3. What Fees Are There? ‘Those Special Fees’?

That’s the big secret in credit card applications: APR and annual percentage rates. The secret? The APR is just determined by your outstanding balance. So if you pay a lot of retail purchases, pay a little more for credit card products, and pay back more more on other purchases, those same accounts can add up, leaving you with something for nothing. In this kind of situation, you probably shouldn’t even look for a credit card offer – it’s just jargon for “universal common carrier credit card”, a fancy name for the credit card that isn’t associated with any particular institution.

We recommend that you look harder, following up on “must have” information, to find out if you’ll have to buy anything from the Discover’s or Morgan Stanley’s cards. It may save you a lot of money and a lot of headaches, but it isn’t really interest. The secret is to pay off your credit card bills at the full rate then transfer the money to the lowest rate card.

4. Do I Need To Have an Annual Credit Card Processing Account?

No. Accepting credit card applications from potential cardholders without a processing account means you still need to have the credit card application processed and sent to the cardholder account manager. There is no credit card processing fee, though. On the other hand, most banks charge fees for annual credit card processing accounts only. Most processing companies charge a single application fee, but the APC has a separate processing service for cash withdrawals.

Many processing services also accept ‘free’ credit card accounts when you choose to ‘Transfer Your Balance’. Even better, this service also includes a ‘Transfer Rewards’ chapter that includes all the benefits of transferring financial assets to regain your net worth. And if you need to transfer a balance to a new account, you could do so today online at http://www.ftc.gov/. You may also find a link to a report at http://www.consumer-guide.org/creditcardshill/transferred-rewards.htm. Take a look at it, too, if you haven’t read it yet.

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