Definition: A credit card agreement is a contract between a credit card issuer and the cardholder. The credit card agreement spells out the terms, conditions, pricing, and penalties of the credit card.
What's in a Credit Card Agreement
The credit card agreement will list:
- the annual percentage rate for each type of balance that can be carried – purchases, balance transfers, and cash advances
- finance charge information including the minimum finance charge and the finance charge calculation method
- grace period
- Credit card fees
The features listed above are the minimal amount of information included in a credit card agreement.
These documents are usually far more lengthy and spell out every detail of your credit card including:- your credit limit and information about how your credit card issuer can change it
- details about using your credit card in another country
- options for paying your credit card balance
- how your credit card is reported to the credit bureaus
- how your information is shared or kept private
- changes the credit card issuer can make to your account
- what constitutes default and what happens if you default
- how to handle a lost credit card
- how to close your account
- how to handle disputes with the credit card issuer
- the legal body who enforces the credit card agreement
How to Find Your Credit Card Agreement
Federal law requires all credit card issuers with more than 10,000 credit card accounts to list a copy of their credit card agreements online. Your credit card issuer should also provide you with a copy of your credit card agreement when you request it. Finally, the Federal Reserve maintains a database that includes credit card agreements from more than 300 credit card issuers.
