These days, credit cards are sent out to anyone with a mailing address!  Most of these credit card offers tell you that you’re pre-approved to use their services and many offer low introductory rates and other perks.  However, don’t be fooled by these flashy marketing pieces.  Remember – if it sounds too good to be true, it probably is.

Before accepting a credit card, read through all of the fine print.  The most important section to study in the credit card offer is the terms section. 

Credit Card Terms

The terms and conditions typically include the interest rate charged on balances not paid off at the end of the monthly cycle.  Even if a card has a low introductory rate, read to terms to discover the interest rate at the end of the specified term.  If a balance is carried over after the introductory term, it can be hit with large interest charges.  The low rate may also have a spending limit and balances over that limit will be assessed an interest rate. 

Credit Card Shopping Tips

Here are some tips for credit card shopping:

• Shop around to find the card that best suits your needs
• Read through and understand all terms before accepting
• Save receipts and reconcile your balance each month
• Keep a record (in a safe place) of card numbers, expiration dates, and customer service phone numbers to be used in case the card is lost or stolen
• If possible, only use the credit card for emergencies
• Be aware of your credit limit or a spending limit associated with an introductory offer

Finally, remember that a credit card is simply a form of borrowing money.  This means that you are responsible for paying back the money spent.  Be careful and mindful when using a credit card.  Soaring credit card debt is a huge problem for many people.  Don’t let yourself be one of them. 

Enjoy,
Ernest.