Almost all the activities carried out every day facilitate the use of credit cards. Due to the prevalent use of credit cards, the buying capacity has increased; since people have the breathing period to repay the credit availed of. The buying decisions do not wait until the salary is received. This has made the usage of credit cards in all walks of life right from dining, to stay in a hotel, purchase of an air ticket, grocery purchase, petrol refilling etc.

Getting the right credit card from a reputed company extending genuine offers has become a concern nowadays due to fraudulent practices carried out while selling credit cards over the internet. Care needs to be taken in order to avoid to falling prey to the fake companies offering bogus offers to the customers.

A few useful tips to find out bogus credit card offers:

Normally a credit card issuer wont ask for hundreds of dollars for a processing and application fee. Only nominal amount will be charged. Also they do not ask for money upfront.

The annual fee is printed on the first credit card statement. So only when you are sure, fee payment should be made.

Person having bad credit problems are targeted by the bogus credit card offers. This is not the case with reputed banks or card issuers, since the repaying capacity is what a genuine person will look for. If an offer says that they even provide credit cards to bad credit people, then one should be cautious enough to reject the offer.

If a person receives mails from unsolicited sources offering a credit card, beware of the mail and mark them as spam at once.

Do not rely on other companies or brokers to get a credit card, as it is of no help. Applying for the same with a reputed company directly will educate more on the details regarding fees charged, penalty details, by going through the policies, terms and conditions of the company on your own.

It is advised to go for counseling with the consumer credit counseling service in case of credit related issues than falling prey to the company which claims that by collecting a fee from you, it will facilitate you to correct the bad credit. When you can correct it yourself for free why pay others?

A gold or silver card offered by a company might end up only to be used for overpriced products or from the very own companys catalogue. So one should be careful to study the status of the company and its credit cards, in detail.

It is better to buy from known sources and reputed companies, than going for offers lent by unknown companies.

APR stands for Annual Percentage Rate. APR attempts to create a single figure of interest allowing the consumer to compare like with like when selecting the best product for their lifestyle.

Without APR it would be literally impossible to make this kind of quick comparison because the credit card companies use different calculations to compute their interest and other charges. Without APR it would be possible for a card bearing an advertised interest rate of 12% (not APR) to be more expensive than one charging 16%.

Financial Regulators (such as the the UKs FSA) have recognized this and as such have attempted to put in some safeguards to protect the consumer, making sure that there is at least some standard information allowing comparison between interest rates and other associated charges.

The main thing to remember is that APR takes into account not only the interest charges levied, but also any other costs that are also included. Credit card companies use different calculations to compute their interest and other charges, so APR makes it easier to make a good
credit card comparison between products. Generally speaking, the lower the APR, the less money you will end up paying back in interest to the credit card provider. It is very important to make sure you compare the APR of different credit cards when deciding which credit card to take out, as card issuers may offer a low rate of interest for an initial period but this will increase at the end of this period.

Any credit card deal will take the following items into consideration :
- the interest rate you must pay
- how you repay the loan
- length of the loan agreement (or term)
- frequency and timing of instalment payments
- amount of each payment
- fees associated with the product
- premiums for payment protection insurance (the lender may choose to make this compulsory)

Remember; if you are looking around for a credit card, you should try and get as low an APR rate as possible. However, be on the lookout for other costs; administration fees, legal fees or penalties you may encur for late charges. It is always wise to shop around for any deal involving finance, making sure that you consider all the options before signing on the dotted line. There are many ways to do this online, with many compenies offering comparison tables on each deal offered. These days you have no excuse not to, the information is freely available.

The law that covers credit agreements in the UK is the Consumer Credit Act (1974).

APR stands for Annual Percentage Rate. APR attempts to create a single figure of interest allowing the consumer to compare like with like when selecting the best product for their lifestyle.

Without APR it would be literally impossible to make this kind of quick comparison because the credit card companies use different calculations to compute their interest and other charges. Without APR it would be possible for a card bearing an advertised interest rate of 12% (not APR) to be more expensive than one charging 16%.

Financial Regulators (such as the the UKs FSA) have recognized this and as such have attempted to put in some safeguards to protect the consumer, making sure that there is at least some standard information allowing comparison between interest rates and other associated charges.

The main thing to remember is that APR takes into account not only the interest charges levied, but also any other costs that are also included. Credit card companies use different calculations to compute their interest and other charges, so APR makes it easier to make a good
credit card comparison between products. Generally speaking, the lower the APR, the less money you will end up paying back in interest to the credit card provider. It is very important to make sure you compare the APR of different credit cards when deciding which credit card to take out, as card issuers may offer a low rate of interest for an initial period but this will increase at the end of this period.

Any credit card deal will take the following items into consideration :
- the interest rate you must pay
- how you repay the loan
- length of the loan agreement (or term)
- frequency and timing of instalment payments
- amount of each payment
- fees associated with the product
- premiums for payment protection insurance (the lender may choose to make this compulsory)

Remember; if you are looking around for a credit card, you should try and get as low an APR rate as possible. However, be on the lookout for other costs; administration fees, legal fees or penalties you may encur for late charges. It is always wise to shop around for any deal involving finance, making sure that you consider all the options before signing on the dotted line. There are many ways to do this online, with many compenies offering comparison tables on each deal offered. These days you have no excuse not to, the information is freely available.

The law that covers credit agreements in the UK is the Consumer Credit Act (1974).

If you have received a pre-approved credit card offer in the mail make sure you read everything. There are good and bad offers and you need to know which credit card offer is for you.

Look for:

* The Annual Percentage Rate (APR). If the interest rate is variable, how is it determined and when can it change?
* The periodic rate. This is the interest rate used to figure the finance charge on your balance each billing period.
* The annual fee. While some cards have no annual fee, others expect you to pay an amount each year for being a cardholder.
* The grace period. This is the number of days you have to pay your bill before finance charges start. Without this period, you may have to pay interest from the date you use your card or when the purchase is posted to your account.
* The finance charges. Most lenders calculate finance charges using an average daily account balance, which is the average of what you owed each day in the billing cycle. Look for offers that use an adjusted balance, which subtracts your monthly payment from your beginning balance. This method usually has the lowest finance charges. Stay away from offers that use the previous balance in calculating what you owe; this method has the highest finance charge. Also don’t forget to check if there is a minimum finance charge.
* Other fees. Ask about special fees when you get a cash advance, make a late payment, or go over your credit limit. Some companies charge a monthly fee regardless of whether you use your card.

The Fair Credit and Charge Card Disclosure Act require credit and charge card issuers to include this information on credit applications. The Federal Reserve Board provides a free brochure on choosing a credit card and a guide to credit protection laws at their web site.

Comparing Cards

* Bank Rate web site provides free credit card tips and information.
* Consumer Action web site has a site that features credit card surveys of interest rates, fees and other terms from dozens of credit cards, as well as free brochures and guides on choosing and using credit cards.
* Card Web lists credit cards and offers e-mail newsletters, frequently asked questions and online credit card calculators.
* Card Ratings lists and reviews credit cards, and offers tips and credit card calculators.

Lost and Stolen Credit Cards

Immediately call the card issuer when you suspect a credit or charge card has been lost or stolen. Many companies have toll-free numbers and 24-hour service to deal with such emergencies.

By federal law, once you report the loss or theft of a card, you have no further responsibility for unauthorized charges. In any event, your maximum liability under federal law is $50 per card.

Complaints

To complain about a problem with your credit card company, call the company first and try to resolve the problem. If you fail to resolve the issue, ask for the name, address and phone number of its regulatory agency.

If the word national appears in the name or the letters N.A. appear after the name, the Office of the Comptroller oversees its operations.

To complain about a credit bureau, department store or other FDIC-insured financial institution, write to the Consumer Response Center.