Student Credit Card and Credit Education Blog

My personal bank is USAA (United Services Automobile Association), odd name but a huge bank with tons of services. It’s where I do my banking, insurance, loans and have a credit card. They are very good but only available to current and former members of the armed services. If you have somebody in your family that is a current or former military service member you should check to see if you can get an account there. Once you’re in, you’re in for life: http://www.usaa.com

Anyway now on to my post. They have listed on their site a credit card offer decoder which I thought was nice of them considering they offer credit cards. I’ve posted the contents of the decoder here for you all:

Congratulations! You’re pre-approved to apply! : That’s right. You’re not pre-approved for the card, just for the privilege of asking for one.

19% APR!: This is the interest you’ll pay on stuff you buy. But look out. That credit card could have lots of different interest rates — one for purchases, another for cash advances, a third for balance transfers, and so forth. It’s up to you to find the details in the terms-and-conditions section of the offer.

We have the right to change the rates, fees, and terms at any time, for any reason. (A): Sometimes rates change when you’ve applied for additional cards from other companies. Or, when something nasty shows up on your credit report, such as failure to make payments to another creditor. So even if you’ve been flawless with this card, you could get charged a default rate (inevitably higher) for something you did with another card.

We have the right to change the rates, fees, and terms at any time, for any reason (B): If you’re late on a payment or two, your rate could take off like a bottle rocket. And you can bet the credit card company will be slower to lower your rate than raise it.

Don’t worry about going over your credit limit: Think credit card companies are doing you a favor by letting you charge more than they said you could? Think again. Most charge an over-the-limit fee even though they let you go over the credit limit. And, they might raise your interest rate, again.

We are pleased to offer you 0% fixed APR on purchases (until July 2008): Large print might make you think the 0% rate applies to your balance transfer. But it’s only for purchases. And not for long. After the introductory period ends, you’ll start paying a much higher interest rate — 19% in this example.

Transfer a balance today!: Not only will you pay 19% on balance transfers after the period ends, you may also get hit with an extra 3% fee for each balance you switch over.

Low minimum payments: Most credit card companies offer low minimum monthly payments (usually only about 2%-4% of the balance). That sounds pretty good until you realize that the less you pay, the longer it will take to get rid of your debt, and the more you’ll pay in interest.

Source: USAA Bank Website