Washington Credit Card : Choosing The Best

By: EconomyWatch Content Team   Date: 26 January 2010

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If you are in the market for a Washington credit card, you would need to consider a number of things but one of the greatest tips of all times is that you must pay close attention to the disclosures.  Also known as the “terms and conditions”, this information will tell you everything you need to know and then some.  Remember, the disclosures outline requirements regarding fees, rewards, interest payment, grace period, and more.

Typically, when you begin your search for a Washington credit card, you would complete an application, which would then be submitted.  The issuing bank or credit union would review the information provided and based on set criteria, decide if your request for a credit card is approved or denied.  As a part of the application process is the disclosures, which allows you to understand all the different things involved before you go through the application process.

Even so, the disclosures will contain the following, which again need to be read and understood when choosing a Washington credit card.

·    Fees – Today, a number of credit card companies, banks, and credit cards charge fees for card membership, which may also be called “participation fees”, “acceptance fees”, “annual fees”, “monthly membership fees”, and “activation fees”.  Keep in mind, sometimes these fees are hidden so you need to look closely to find them.  Additionally, the fees are monthly, periodically, or set up as a one-time charge.  The amount of membership fee could be as low as $10 or as high as $150.  The problem is that if you were securing a Washington credit card with a $300 available credit and then you are charged $150, which is taken off the balance, when you get the card, you only have an available balance of $150.

·    Miscellaneous Fees – In addition to membership fees, the Washington credit card might also charge a transaction fee, which means each time you make a transaction, you are charged.  In addition, fees may apply when you are late on a payment, if you take out a cash advance, or if you were to charge more than your available credit.

·    Annual Percentage Rate – In the disclosures, the Annual Percentage Rate is usually listed as APR.  Remember that by law, the credit card company, bank, or credit union is required to disclose this information prior to the account being activated.  Additionally, the APR has to be provided on every monthly statement received.

·    Grace Period – The Washington credit card disclosure would also provide details pertaining to the grace period.  This is an amount of time you have after the specified payment due date in which you could make the card payment and not be charged interest or fees.  For instance, if your payment date was on the 15th of each month and you have a 10-day grace period, you would have until the 25th to have the payment to the creditor without incurring charges.  However, the grace period is only beneficial if the balance is paid in full.

·    Balance Computation Method – One other thing you need to watch for on the disclosure for your Washington credit card is that if you are not offered a grace period or if you do but you expect to make payments to pay off the balance instead of a lump sum, the finance charge would be determined with a Balance Computation Method.  This method is used to make a significant difference in the finance charge you would ultimately pay.
 


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