4 Important Things about Credit Cards for Over 50’s
Think you know everything there is to know about credit cards? Then, you better think again.
11:42 18 April 2013
Credit cards have evolved over the years. There are some things that have changed that you need to know about in order to protect yourself from charges and unpleasant surprises. If you’re over 50 and if you’re thinking about using your credit card for purchases, here are some of the most important things that you need to know about:
- Credit card interest rate is calculated differently by different issuers. It is very important for you to understand that different issuers calculate interest differently. That is why, if you have two credit cards with the same interest rate, it’s possible that you will end up paying more with one credit card than the other. This is because credit card providers start and stop charging interest on transactions at different times. To avoid unpleasant surprises, know how interests are being charged before you use them.
- You don’t need credit card protection insurance. Most customers are offered credit card protection insurance by credit card issuers. This protects you if your card was lost or stolen and used by other people. If you’re wondering if this is absolutely necessary, the answer is no. Under the Consumer Credit Act 1974, you’re not liable for any misuse once you’ve reported that the credit card was lost or stolen.
- Risk-based pricing affects interest rate. Banks and credit card companies use credit card risk-based pricing when setting interest rates. With this, people who have poor credit history are generally charged higher interest rates when they apply for credit cards.
- Credit limit depends on your credit history. Banks and credit card companies take several elements into consideration when setting your credit limit. These include your capacity to pay, annual income, and credit history. If you’ve got excellent financial background, you’re most likely to qualify for the maximum credit limit.