Credit Card Information
Used properly, credit cards give you financial flexibility. They allow you to take advantage of limited-time offers, travel with little cash or handle an emergency.
- What are the benefits of having a credit card?
- What should I look for during the credit card selection process?
- Do all credit cards allow you to carry a balance from month to month?
- What kind of legal protection do I have with my credit cards?
What are the benefits of having a credit card?
Credit cards offer financial flexibility that allows you to purchase something today and stretch out the payments over months if you choose. Some cards offer cash back or rebates for products and services. Credit cards also offer security while you are traveling if your car breaks down or if you miss a flight. You need a credit card to rent cars or reserve rooms at most rental agencies and hotels.
What should I look for during the credit card selection process?
Select a card on the basis of its total cost to you. To determine a card's cost, look at its annual fee and, if you plan to carry over a monthly balance, its finance charge. You might also want to consider a card that offers cash back or rebates for products and services.
Do all credit cards allow you to carry a balance from month to month?
No, some cards, called charge cards, demand payment in full each month. Those cards can be good if you're looking for the discipline of paying off your debt each month. They tend to have higher yearly fees but do not add a finance charge.
What kind of legal protection do I have with my credit cards?
If your cards are lost or stolen, you are responsible for contacting the companies that issued them as soon as possible. It is important to read the contract carefully when you apply for a credit card. The contract will clearly state what charges you are responsible for during the period between when your card was lost or stolen and when you reported the loss to the card company. In some provinces the most that you can be held liable for is $50 worth of purchases.
Your contract will also state the limited time period you have to dispute a bill if you have been charged in error.
