New York Credit Card: Standard Terms Apply

By: EconomyWatch Content Team   Date: 26 January 2010

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A New York credit card is no different from any other except a credit card company, bank, or credit union issues it within the state of New York.  While each issuing company and even different types of cards would likely feature unique terms, most often the terms and conditions are standard.  For instance, the New York credit card may or may not charge a membership fee.  However, you would be charged an APR or Annual Percentage Rate regardless of the card.

We wanted provide you with some of the other standard terms you would expect to find on your New York credit card.  Keep in mind that because all of these terms vary and issuing companies are highly competitive, it would be to your benefit financially to compare a number of options before settling on just one card.

·    Balance Transfers – Depending on the type of New York credit card you choose, it might provide balance transfers.  Most of the larger credit card companies provide this as a standard feature whereas other companies consider it a bonus.  Regardless, with a balance transfer, it means you could move the balance from another credit card with a higher interest or excessive fees to the new credit card that has a lower rate and few, if any fees.

·    Average Daily Balance – When looking at standard terms for a New York credit card, you will probably see something called “Average Daily Balance”.  This is determined using a calculated method so the account is credited from the day the payment is received.  The amount of the daily balance is added to the current billing cycle, which is then divided by the number of days in the billing period.  With that, the average daily balance would be determined.

·    Previous Balance – The New York credit card might also list “previous balance” in the terms, which reflects the amount that you owed to the issuing company at the end of the last billing period.  Keep in mind that any payments, purchases, or credits made in the current billing period would not be included in this balance.

·    Credit Limit – The credit limit for the New York credit card would be set at the time your application is approved.  If you have excellent credit, this could be as high as $7.500, if not more.  However, if you have poor credit, you may only be approved for $300.  However, if all payments are made on time and preferable the balance paid in full each month, within six months, the issuing company of the card would likely provide an increase.  The credit limit is the amount of money you have available on the card.  Any purchases and charges would then be deducted from the available credit limit.

·    Special Delinquency Rate – Finally, when looking for a New York credit card, it may include this rate, which would be listed in the terms and conditions.  In this case, the card might offer a low interest rate when payments are made on time.  However, the issuing company would then add a high Annual Percentage Rate when you make a late payment for a predetermined number of times.  Usually, the Special Delinquency Rate would be a minimum of 20%.
 


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