What You Should Know
A credit card is primarily a convenient payment mechanism. It is not intended to be a long-term credit facility. Should you require long-term financing, you may wish to consider alternative financial products.
5 Questions You Should Ask Yourself
- Why am I applying for this card?
- Can I pay for the purchase in full each month? Or do I intend to pay the minimum sum required and rollover my payments?
- If I do rollover my payments, do I have the capacity to pay the accompanying charges?
- Do I understand the terms and conditions for the use of the card? For example, do I know what are the various fees, interest, finance charges, and penalties that accompany the use of the card?
- What action can the bank take if I fail to settle my overdue payments?
10 Questions You Should Ask The Bank
- When will the promotional free membership period, if any, expire? What is the fee I will have to pay after the expiry period?
- What is the minimum amount I have to pay each month?
- How much interest do I have to pay on the outstanding amount?
- If I do not make the minimum payment for one month, what are all the interest and other charges that I will have to pay?
- What are the charges I will incur if my payment, either by cheque or GIRO, is returned for whatever reasons?
- If I take a cash advance from my credit card line, what are the charges that I will have to pay?
Loss of Credit Card
- If I lose my credit card, what must I do?
- If I lose my credit card, what are my liabilities for unauthorised purchases?
- What is my credit limit?
Changes in Terms and Conditions
- If there are any changes in the terms and conditions for the use of the card, will I be informed of these changes? If so, when will I be informed of these changes?