When getting a credit card for the first time, it is natural to have some questions. The concerns you have are normally the same as others in your position. Here are 10 top* credit cards questions and answers to help you along the way.
1. How does the Consumer Credit Code protect me?
The code is a used nationwide by all building societies, banks, credit unions and other businesses. Under the code these companies must make you fully aware of your rights and obligations in any credit transaction. They must make sure you are 100% clear in your understanding of the interest rates, and other payment terms of your contract.
2. How important is it that I read the full terms and conditions of my credit card contract before I sign?
Extremely important! If there is something you don’t understand then ask, or get professional advice. You do not want any nasty surprises.
3. My credit card company has increased my interest rate. Can they do that to me?
It is written into your contract with them then yes it is allowed for them to change your interest rate. That is why it is so important you read your contract thoroughly, so you are aware of what you are letting yourself in for.
With the Bankwest Breeze MasterCard, you can benefit from a low rate on balance transfers and purchases, and an annual fee waiver in the first year.
- $0 p.a. annual fee for the first year ($89 p.a. thereafter) annual fee
- 8.99% p.a. on purchases
- 2.99% p.a. for 9 months on balance transfers
- Cash Advance Rate of 21.99% p.a.
- Up to 55 days interest free
4. I feel I was mislead into signing an contract governed by the Consumer Credit Code. What can I do about it?
The first thing to do is get some professional advice. Sometimes if a court feels there was unequal bargaining power when the contract was signed they can declare the contract void. If you need advice you may be entitled to it free from the Consumer Credit Legal Service.
5. We told a white lie on our application. Now the card company has found out. What should we do?
Get legal advice! It is a very bad idea to lie on any form of credit application. In most cases you will be found out by the credit search and it is classed as fraud.
6. My bank account has gone overdrawn. Does the Consumer Credit Code govern that debt?
No that kind of credit is non-applicable to the Consumer Credit Code.
7. I think I am going to lose my job and will not be able to pay for my car credit. Will they take it from me?
As long as you are given reasonable notice, the Consumer Credit Code does allow repossession of goods where a debt cannot be repaid. Again a good idea is to seek advice.
8. My brother lent me some money and has been charging me interest on the amount. Does that mean I am protected by the Consumer Credit Code?
No. Only business loans are covered- Personal loans between individuals are not.
9. Somebody has asked me to be a guarantor on their loan. I am struggling for money and am worried. What happens if my friend cannot pay his bills?
Before you enter into any agreement to be a guarantor make sure you speak to a professional and read any contracts yourself. If the borrower cannot pay his debt you will be held responsible and obligated.<
10. Can I decide against being a guarantor on a loan?
Sometimes the Consumer Credit Code will allow a person to withdraw from being a guarantor. Generally it must happen before the credit has been agreed, and also if there are differences between pre-contract and actual contract details. Seek legal advice.
Hopefully these top* 10 credit cards questions has been a help to you, although we would strongly suggest getting proper legal advice before getting into any contracts. That way you understand everything you will be obligated to under the agreement.