The APR is the cost of credit expressed at a yearly rate. Before applying for a card, students should find out a company s payment grace period information. Grace periods allow consumers to avoid finance charges as long as they pay off the balance before the due date. Students should also check to see if and when a card charges any annual fees, such as a membership fee. When looking for a credit card, students should ask about transaction fees and other charges.
Some companies charge a cash advance, late payment or over-limit fee.
Students should know a company s balance computation method, which is the system used to calculate interest. Understanding the definitions of all terms used in the credit agreement is important for students. Consumer Credit Counseling Service of Mid-Missouri is a member of the National Federation for Credit Counseling.