Why is it important for issuers to provide Disclosure before card use?

Providing Disclosure before card use is crucial for ensuring that cardholders are fully aware of their financial obligations. This involves informing them about key aspects such as interest rates, fees, repayment terms, and other conditions associated with the use of the card. Understanding these elements is vital for cardholders to make informed financial decisions and manage their credit responsibly.

When cardholders are adequately informed about their obligations, it helps prevent situations that could lead to debt accumulation or misunderstandings regarding payment responsibilities. By clarifying these financial commitments upfront, issuers not only foster transparency but also contribute to a more responsible approach to borrowing and spending among cardholders. This practice ultimately benefits both the issuer and the consumer by promoting a more informed and responsible use of credit.