There are plenty of precautions one should take with a credit card. Not all credit cards are designed to help out the customers. Some credit cards have more than a few things wrong about them and if you are careful you would be able to see the red flags in time. It is important to be careful with your credit card right from the time you apply for the card. For example, it is a good idea to check what your credit score is from the credit bureaus and apply only for those credit cards, available for your credit score. This is important because if you apply for a card above your credit score, you might be rejected and that would affect your credit score adversely. On the other hand, you would want to apply for the card that offers the best possible terms for your credit score.

You must also be careful about the terms and conditions of the credit cards when you apply for them. Different types of credit cards have different types of fees levied on the customers. That is why you should check the fine print of the card. Firstly, there is the APR that is charged on credit card debt. In some cases, this APR is fixed but in some cases it varies. Generally, in promotional offers, the APR is low at the beginning and after the introductory period it goes up. You need to check the APR for your credit score, because although excellent APRs are promised they might not be available for cardholders with lower credit scores.

It is extremely important to check the fine print to make sure there are no hidden charges levied on the card. For example, some cards come with an annual fee of around $75 in the very first year while some waive it off. There are cards which charge a 2 or 3% balance transfer fee which will once again be an added expense especially when you are using one credit card to pay off the debt on another and transfer the balance. Similarly, there are cards with other fees like the over limit fees and late fees. Some credit cards waive off fees for cash advance from ATMs while some charge you for that. So, you will have to pick a card that doesn’t charge several different types of fees and isn’t ambiguous about the terms and conditions.

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