Articles - Archived Feature

Credit Cards: The Right Way

Fixed rates, variable rates, changing rates, default rates, over-the-limit fees, double-cycle billing, cash advances, reward points…terms like these are all over most standard credit card agreements.

That's why it's so important to read the fine print. Often overlooked, these terms are ways for credit card companies to nickel-and-dime you out of major cash. In fact, American consumers now owe nearly $1 trillion in credit card debt. That amounts to about $8,500 for every household in the United States.

Here are a few questions to ask yourself about your current credit card agreement:

• Can your interest rate increase at any time for any reason?
• Can you be penalized even if you pay on time?
• Does the agreement have misleading terms you don't understand?
• Does the due date randomly change?
• Are late and over-the-limit fees excessive?
• Will they issue a card to someone under the age of 18?

If you answered "yes" to any of these questions, you may be interested to learn of a bill currently working its way through Congress aiming to limit the exploitive practices employed by some credit card companies. It's called the Credit Cardholders' Bill of Rights.

You may also be interested to learn about Local Government Federal Credit Union (LGFCU). We don't need a bill of rights to tell us the right way to structure a credit card. We've been upholding high standards for our members for more than 25 years. Our LGFCU Visa Credit Card has one rate, a 25-day grace period, no over-limit fees, no default rates and no changing due dates. It's simple and it works.

Best of all, as a North Carolina local government employee, you are eligible for credit union membership and this responsibly-structured credit card. Just visit www.lgfcu.org, give us a call at 888.732.8562 or stop by your local branch.