What is a credit card agreement?

A credit card agreement is a legally binding contract between a card issuer and a cardholder that outlines the terms of a credit card account. This document is sometimes called a cardholder agreement or credit card terms and conditions. It specifies the interest rate, fees, minimum payment requirements, and other details associated with the credit card. Specifically in Delaware, state law governs some of the terms of a credit card agreement. This includes the required disclosures that must be included in the agreement such as the annual percentage rate of interest, grace period, fees, and other rules associated with the card. The agreement also outlines any penalties that may occur if the cardholder misses a payment, goes over their credit limit, or fails to make their minimum monthly payment. It can also include special offers such as 0% introductory interest rates, cash back rewards, and balance transfer rates. By signing the credit card agreement, the cardholder agrees to abide by the rules and terms outlined in the agreement. It is important for cardholders to read and understand the agreement before signing, so they are aware of all the terms and conditions associated with their account. Understanding the agreement can help them avoid financial penalties and make the most of their credit card.

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What is a credit card agreement?

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