Important Things you need to know ....

Now you must be thinking that these are things that you are already aware of, but are you sure that you know the Exact meanings of the words used by the bank? Think. I will try to help you with that. Let us take and example for convenience. Suppose you have a credit card, where the Credit Limit is $2000. In the contract it is mentioned that the Cash Credit Limit is $750, and that the APR for purchases is 14.25%, and for cash advance it is of 21.36%. So this means that the credit limit that is given of $2000 is only for purchases and not for cash advance. Even if you have the entire $2000 available, the cash that you can withdraw from an ATM is only $750. Now, the contract provides a statement generation date of 15Th of every month, and the Due date currently is of 3rd of July 2009. I will tell you why I specified a date. The rule followed by most of the banks state that the due date will be 18 Days from the statement generation date. This means that the due date is 18 days from the 15Th of that particular month, and Not 18 days from the day you receive the statement. This is a popular misconception that we tend to think the due date to be 18 days from the day we receive the statement, and that is exactly what the bankers capitalize on. Then again, the reason why I mentioned the date previously is because, you will note that the month of June has 30 days. So 18 days from 15Th June will be 3rd July. However, that is not the same for the July statement. The statement that gets generated on 15Th July, the due date is 18 days from 15Th July. As July has 31 days , the due date for this statement will be 2ND august and not 3rd august. Once again, his is a very common mistake that all of us tend to do, resulting in a late payment charge of perhaps of $15 or $20.