In the News - May 2008
Select and use credit cards wisely
MARION, Ark. - Comparing credit card offers can save money on interest and
fees, says VeEtta Simmons, Crittenden County extension agent for the University
of Arkansas Cooperative Extension Service.
"Look for features specifically meeting your credit card needs," Simmons
says.
The first step in choosing a credit card is to think about how you will use
it.
"If you expect to pay your monthly bill in full, your better choice may be a
card that has no annual fee and offers a longer grace period," says Simmons. "If
you’ll be carrying a balance, though, a lower annual percentage rate is a better
feature."
Look for a card that carries a lower APR as well as lower fees on cash
advances if you’ll use the card primarily for a cash advance. Some companies
charge a higher APR for cash advances than for purchases.
APR is the interest rate paid if a card carries a balance. APR is also paid
on cash advances or transferring the balance of card to another one.
"APR can be fixed or variable, but consumers need to be aware that APR can
increase with late payments," Simmons says. "Also, APR does not include monthly or daily compounding of finance charges,
additional fees or factors eliminating the grace period, all of which can raise
the cost to consumers. The following are additional fees associated with credit
cards: annual, cash advance, balance transfer, late payment, over the limit, set
up or processing, return check and miscellaneous fees charged by the company.
Credit is a valuable tool if used wisely. For more information on financial
resource management, visit www.uaex.edu. The
Cooperative Extension Service is part of the U of A Division of Agriculture.
May 9, 2008
Media Contact: Elizabeth Fortune
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2120
efortune@uaex.edu
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