Filtering the terms and conditions of a credit card can be daunting. Language is not always straightforward, and it is not uncommon to feel lost. According to J.D. Power's 2019 Credit Card Satisfaction Study, two-thirds of consumer reports fully understand credit card rewards. However, cardholders have lower scores on satisfaction with the card issuer's interpretation terms than other credit card features and services.
But the more you know your credit card, the better your financial decisions will be.

Here are some questions to consider when browsing the fine print of cards.

How much is this card?

You can learn about the long-term cost of bringing a credit card by looking at the credit card agreement that came with your credit card. Identify each potential cost and maintain the organization. Put all the materials in front of you, take out your highlighter and find out the key information you need to know - interest rates, any fees, conditions, things of these nature.

Start with Schumer Box, a table that is hard to miss on the front page of a card agreement, listing fees and interest rates, including:

Annual percentage

Your "standard variable APR for purchase" is the purchase interest owed when you hold the balance. Your APR will vary depending on your credit card and your credit rating, but the average APR for credit card accounts that incurred interest in the second quarter of 2019 was 17.14%. You can avoid interest by paying in full every month. Note that some cards have different apr, such as balance transfer and cash advance.

Interest-free introduction

Some credit cards offer a 0% April introduction offer that can help you exempt large purchase interest for a period of time or help you pay off your existing balance faster by transferring it to your credit card. Please note that this is different from the deferred interest offer. In these cases, interest is actually cumulative, and if you don't pay off the full balance before the promotion period expires, you will be traced back to all of these interest rates. Make a note of the due date.

Annual fee

The annual fee is usually a reward card or credit card (usually a credit score of 629 or lower). Sofrant said that for the reward card, she would look for an extra allowance that would offset the cost. Credit cards designed for bad credit usually do not offer rewards. A better option might be to have an annual fee-free credit card. This requires cash advances, usually a few hundred dollars, which is your credit line. When you graduate from an unsecured credit card or close your account in good standing, you can get the money back.

Other fee

Look for fees such as prepaid cash, balance transfers, or late payments. You can easily avoid some of them, but others may be inevitable, depending on your habits. For example, if your card carries a foreign transaction fee, you will be charged each time you use it overseas.

Is there a limit on rewards?

If your credit card offers a rewards program, the terms may be included in the general credit card agreement or in a separate document. Here's what you're looking for:

Signing bonus

Although these are generous, you must first meet the spending threshold in a certain amount of time – usually thousands of dollars. Abu Gediri said, don't overspend in order to get a bonus, make sure you can afford it. If you plan to hold this card for a long time, its ongoing reward will be more important than a one-time bonus.

Redemption value

Terms and conditions usually notice that the value of the reward depends on what you redeem, but they do not always specify the value of each option. You may need to log in to your account or ask for customer service. Please note that some cards have a minimum redemption, which means you can only redeem "starting at $25" or "in increments of $5", for example.

Qualified transaction

Credit cards with bonus categories may impose restrictions on them. Buying petrol at a gas station may only earn one price, but buying something at a gas station convenience store may earn another price. Cash advances or balance transfers are usually not eligible for awards.