Can Consumers Understand The Fine Print?

The absurdly miniscule size of the type combined with the fact that most of the information they contain is written above the reading level of the average American almost makes it seem like credit card disclosure documents are specifically designed to be a difficult read.

Legally, credit card companies have to send out a disclosure of terms to all of their cardholders, but they apparently the companies are not required to make said disclosures easy to understand. In fact, the Government Accountability Office concluded recently in a survey that the information provided in most disclosure letters is not only poorly organized, but also written using language that is tricky to comprehend.

MasterCard did their own study and discovered that just over half of the consumers they surveyed, some 55%, were not even aware of certain perks and benefits that were available to them through their credit cards. In some cases, cardholders even paid extra for the privilege of having benefits they already had in the first place.

Most credit card customers know about the airline mile rewards program or cash back incentive program offered by their credit card, but they don´t know about other benefits being a particular card member may afford them. These perks, which are wasted if they go unused, can be real money savers.

A few of the standard benefits on offer by most credit card issuers are: car rental loss and damage insurance; travel accident insurance; trip cancellation insurance; lost luggage insurance; extended warranties; and security from unauthorized purchases. Of course, specific details vary based on the issuer and type of card.

The best way to educate yourself about the plastic perks you have hiding in your wallet is to carefully (re)read the original paperwork you received when you first opened your account. If you have long since lost your disclosure letter, simply call your credit card company and request that a new copy be sent to you. Don´t let the daunting nature of the disclosures deter you from learning how to use your cards to your best benefit.