Credit card fine print: What you must know before you swipe | Mint

Credit card offers and rewards seem very tempting for many card users. These offers attract many people to opt for credit cards as a mode of payment. However, using a credit card is not limited to offers and benefits, the fine print will exactly determine the impact of card usage.

The fine print of a credit card refers to the terms and conditions associated with the card. It includes details about rewards programs, fees, and other requirements for credit cards.

The fine print will help you determine how your credit card could be used in future purchases. It is typically placed in the footnotes of credit cards. People often overlook the footnotes of the document, missing out on key details of the credit card and committing to certain conditions they are unaware of.

Therefore, it is essential to understand the fine print of a credit card in order to fully understand whether it will add value to your life or become a costly affair. Let’s dive in to know what one must check in the fine print to use a credit card judiciously.

Rewards

One of the most attractive features of a credit card is rewards. The rewards on your credit card are usually mentioned in the main document. However, please check the exact conditions associated with the rewards available on the card. Also, try to understand how many benefits you will get in each transaction made through the card.

Every card will have a different process for earning rewards. Go through the fine print to understand the correct method. Most offers provided by a credit card will mandate a specific limit to earn the reward. Make sure that the limit aligns with your budget. If it goes beyond your budget, opt for a different credit card with a lower limit to earn rewards.

Offers

A credit card provides various offers, such as cashback, rewards, points, and miles. These offers can be used across multiple categories, such as travel, groceries, and shopping. Each type of offer has its own conditions, which are mentioned in the fine print of the credit card. Understanding the specific terms and conditions of the offers will help you get the most out of them.

Missed payments

Every credit card issuer charges an interest rate and other fees if you fail to pay your credit card dues on time. Go through the fine print to understand exactly what will happen if you miss payments. Additionally, make sure to know the impact of missing payments on the offers and rewards of the credit card.

Fees

Before being lured by rewards and offers provided by a credit card, it is important to understand the fees levied by the issuer. Most credit cards come with several types of fees. The fine print of the credit card will mention the fee structure and any hidden fees, which will help you understand the exact cost of the card apart from paying the bills.

In conclusion, going through the fine print of a credit card will help you to analyse the impact of credit cards on your finances. Several credit cards come up with attractive offers, however, the fine print will determine how exactly such offers will benefit users.

(Note: Using a credit card carries its own set of risks)