Credit Cards – Handle Them With Care

Credit cards can be useful financial tools, but they can also get you into a lot of debt if you use them improperly. In order to make the most of a credit card, you should look for certain things when deciding which credit card you will use. If you make your decision carefully, you can avoid a lot of future grief.

Part of your decision will hinge on how you plan to pay back your debts. If you know that you can pay back your balance in full every month without carrying over any debt, then the APR won’t matter. The APR refers to the interest rate of carrying over a balance. If you pay it back every month, then you won’t be affected by a high APR! With this type of card, you will be able to find a deal with no annual fee, and longer grace periods (extra time to make your payment).

If you plan to use the credit card as a sort of long-term borrowing tool, then a high APR will be financial suicide. You should look for a deal with a low APR rate, but make sure to read between the lines. Some credit cards offer introductory APR rates that are quite attractive, but will change to a less appealing rate after several months. You should also beware of penalty APR rates that charge extra money if your balance exceeds a certain limit.

One thing you will quickly realize is that credit card companies frequently hit you with unexpected fees and charges. That is why it is important to read the contract they give you, no matter how intimidating it is. Find out exactly what you are getting into, and you will be able to use the credit card to your own benefit, to assist you in your financial troubles instead of creating new ones.