Your Rights and Responsibilities: Credit cards

Applying for a credit card

Financial institutions that solicit consumers for a credit card must provide them with the appropriate information at that time, as well as when the consumers apply for a credit card.

When your credit card arrives, it will have a card agreement or contract with it. Since this agreement outlines the major terms and conditions of the card, make sure you read it carefully and fully understand it, and that you keep it for your records.

Credit card issuers must provide you in an information box at the beginning of the credit card agreement, the following information:

• your initial credit limit, unless the credit limit has not been determined (in this case, the issuer must provide the initial credit limit with or before your first statement);
  
  
• the card's annual interest rates;
  
  
• the grace period, if any;
  
  
• how the interest charges are calculated;
  
  
• your minimum monthly payment and how it is calculated;
  
  
• any foreign currency conversion fee and how it is calculated;
  
  
• the annual fees; and
  
  
• any other charges or fees that may apply.

Here is an example of how the information must be provided in an information box at the beginning of the credit card agreement:

• Credit card agreement

Your credit card agreement must also include the following information:

• how often you will receive your statements; and
  
  
• any optional services you may wish to have, such as credit balance insurance, and the charges for each optional service.