know all you can about credit cards

By Lena / September 19, 2012

Know All You Can About Credit Cards

When you are trying to establish credit, there are a lot of mistakes that can be made if you do not know what you are doing. You will want to apply for a credit card, but you need to make sure that you know all about what they are offering before you sign up. This article will let you know what you should be looking out for.

The first thing to watch out for is how much credit the company is offering you. While you do not want to have a credit card limit that is so low you will not be able to use it in the event that you need it, you do not want one that has a limit that is too large either. Having a credit limit that is too large will encourage you to spend money that you may not be able to afford to pay back.

Ask what the interest rate is on the card. If it is much too high, you should consider another card. The last thing you want to do is owe many times more than what you have spent.

You should try to find out if there are any benefits associated with the credit card. There are many companies that offer cardholders discounts on different services. A lot of them offer warranties on items that you purchase with the card.

You should always ask if there is a period where you will not have to pay any interest. Some companies offer no interest to new customers, but keep in mind that this offer is not timeless and will expire at some point.

Always know what day your credit card payments are due and be sure to pay them at that time. A lot of companies are not very clear about when payments will be due. If you are one of the thousands that is paid monthly, you may want to choose a card that is due around the time that you get paid.

Make sure you understand what fees will be charged for making late payments. Most cards charge very large late fees if you do not make timely payments. You do not want to get stuck paying these if you frequently cannot pay on time, so try to choose a card that has reasonable fees, if any.

You need to explore how you can get out of any contracts before you sign anything. Many people fail to understand that getting a credit card is not as simple as filling out paperwork and spending away. You are entering a contract, and there are terms and conditions that need to be met. Make sure you understand what the terms are for cancellation.

A lot of people damage their credit, because they sign up for cards without reading the fine print and understanding all that is required of them. If you make sure to become informed, then you should have no problems and your credit rating should be fine. Remember not to sign anything until you fully understand everything that it says.

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Lena

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