May 26, 2005

Most of us who will buy into a credit card, will do so on the word of the seller or the face value of the glossy leaflet that has dropped onto our doormat, with both only giving us an insight to the good things about the credit card and how wonderful it will be to have one.

But really we should all look beyond that and take the time out to read the small print that inevitability that comes with any sort of agreement. By doing so we can save ourselves not only cash but a whole lot of trouble and time, when one of these terms come into play.

"the small print will hold many little charges"

The small print is all the parts of the agreement that have to be there by law and are written so small to put most of us from even trying to read them, never mind trying to understand them, the small print will hold many little charges that are attached to your credit card that you will not be told about when making an application, or if they are they are said in one breath and so quickly, trying to decipher it sends your head into a spin.

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So what is there to look out for in the small print?

Well first things first, with so many credit card companies giving 0% interest free periods, check that this is not only on balance transfers, but also on any new purchases that are made with the credit card, as if not then you will be looking at interest being added straight away to these purchases and any payments received by the credit card company will go towards the balance transferred, leaving the new purchases building up interest.

Small pieces of information such as a yearly fee for holding a credit card may also be in amongst the small print, though most credit card issuers have dropped this charge.

Charges for any late or missed payments will also be hidden amongst the small print and can incur a small sting to your finances to the tune of between £15-£25 depending on the credit card you are with.

Knowing of a lot of these little added extras to your credit card agreement will save you the bother and cash that could be used to bring your debt down, but it is a sure fire way for the credit card companies to pull back some of the money that they are giving to you in free interest periods, to lure you onto they’re credit card, so it is imperative that you read the small print and know where you stand regarding unexpected charges on your credit card.