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Getting the Right Card and Using It
Credit cards are just a form of borrowing and as such they have certain terms and conditions that must be adhered to. This includes the payment of fees and interests associated with the card. Annual Percentage Rate (APR), annual fees, transaction fees, and balance computation for finance charges are some of these. These fees and interests vary from card to card. Some cards which have a low APR may slap you with very high penalties on late payments or non-payment. To discern these differences, make sure you read the fine print before making any commitments as Credit Companies are noted for hiding fees in the fine print.
Having discussed the negatives, one of the primary benefits of credit cards is the liability limits. To take advantage of this, it is important that if you ever lose your card, report it immediately. This will minimize your liability, particularly if the card is stolen and then misused. Always keep transaction receipts so you can locate discrepancies, if any, on the bill sent by the financial institution. Ftc.gov Reports:
You'll probably also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan's services and features. For example, you may be interested in "affinity cards" - all-purpose credit cards sponsored by professional organizations, college alumni associations and some members of the travel industry.
Read More: Choosing and Using Credit Cards
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