People with credit cards are legally bound to it by their card holder agreement. The card holder agreement is your contract with the issuer of your credit card. Card holder agreements carry a lot of obvious information, rules and regulations, as well as a lot of not-so-obvious details that can be critical to your proper use of the card.
The credit card holder agreement almost always comes in the form of a pamphlet or document. It is also very often found online, on your credit card’s online account page so that you can access the information easily. Contained within the credit card holder agreement will be such topics as how credit card disputes are resolved, so if you ever encounter a credit card dispute you’ll know how it goes down, and what to do. Also included will be the credit card company’s method for calculating interest rates, the APR, and other assorted fees and charges. This might be the most important part of the card holder agreement, in that it will help you understand how best to avoid as many fees and charges as possible.
The card holder agreement will also explain – the when, where, what, and how – details of your credit card. If it’s not accepted at various kinds of establishments, for example, it could be explained here. Also, this section of the card holder agreement will spell out your options when it comes to cash advances. In the credit card holder agreement you will also find the proper procedures required for dealing with a lost or stolen credit card. This information will come in very handy if you lose your card or it gets stolen – preempting any fraudulent purchases on your credit card will spare you a world of hassles.