Understanding credit cards before owning it

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Understanding credit cards before owning it

Understanding credit cards before owning it

Anyone who has a credit card will tell you how important it is to know how they work. Unless you have a good idea of what it entails to have a credit card, do not jump into hasty decision about them. The proverbial look before you leap has never been more important than in the case of credit cards. Often there are so many offer that customers receive that it becomes difficult to pinpoint a single one as being really good or useful.

There will be a lot of talk about sales and incentives that can be misleading for consumers; the important thing to do is to understand that credit cards are an expensive affair. In order to understand credit cards, you should be able to look past what is being offered to see how things really stand. When you have been able to understand what this entails, you can then evaluate what to do about it. The most common mistake people make is to misunderstand terms or just take a card at face value which tends to prove to be quite an expensive mistake to make at the end of it.

Read your offer

The other important fact about credit card offers is to read and understand what the fine print means. The important details about the credit card is often contained in the fine print and the latter part of the agreement that people find difficult to follow or neglect in the hurry to get their hands on the card. Check the APR, look for any statements indicting this may change and how and why it may occur. Know what the APR on the card is and also the credit limit available to you. Check out the payments you are expected to make every month and also how you can make sure the credit card will be beneficial to you.

Consider and compare

You have to make the credit card work for you rather than simply end up paying amount after amount trying to fix it. Look at charges for late fees, over the limit transactions and other situations. Do not sign up for cards which have too many charges or transaction fees on them, as it will simply add to your bills. Always have a good idea of your income to debt ratio and sort it out well in advance before deciding to pay on the card or use it. The more carefully you scrutinize things, the better it will be.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Spring 2018 – Expert Choice

Top 5 Cards for Travel from Our Partners: Spring 2018 – Expert Choice

Posted: February 12, 2018

Days are getting longer, snow is melting and you already feel the lightest breath of warm breeze on your face - spring is here. Summer holidays are looming, and so is Easter with its shopping. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!