able to get a lower interest rate on the card. On the downside, a co-signer will share responsibility for the card. So, if you fall behind on payment, their score will suffer too.
What’s an over-limit fee?
When you open a credit card account, you’ll have the option to select an “over-limit” fee. This feature lets you exceed your credit limit, but you will be charged a fee. If you decide against the fee, the purchase will simply be declined if you max out your card.
The Credit CARD Act says fees charged for over-limit purchases must be “reasonable”; the problem is, the card issuer determines what’s reasonable. So, think carefully about if you really want this option. By law, the company can only charge an over-limit fee once each billing cycle. You have the option to reject the over-limit fee program at any time online, by phone or letter.
Interest rates: What you need to know
When you start shopping for a credit card, don’t forget to pay careful attention to the interest rates. If you’re planning to make major purchases and will need to temporarily carry a balance, for example, you should consider a low-interest credit card.
First-time cardholders should know that credit card companies can raise rates on existing cards. If you’re more than 60 days late making a payment, you can expect interest rates to