Avoid credit card offers which have no grace period. No grace period means you may be subject to finance charges which start accruing from day one of your first purchase. This is regardless of whether you pay in full each month.
2) LIMITS ON GRACE PERIOD
Many credit cards typically offer a 20-25 day grace period which allows new purchases to be excluded from calculation of finance charges. Be aware however that if you carry a balance from month to month, most cards provide no grace period on new purchases. So in order to take advantage of your credit card's grace period, pay your credit card bill in full each month.
3) LOW INTRODUCTORY RATES
In case you come across credit card offers which seem to offer a credit card with an incredibly low interest rate, check to see whether or not the rate is an 'introductory' rate. Introductory rates are typically for a limited period of time, such as 2% for the first 6 months. After the introductory rate period has passed, you will be subject to the regular interest rate which is likely to be higher. While introductory rates are great while they last, remember to also learn about the on-going rates before signing up for any credit card.
4) READ THE FINE PRINT ON COSTS OF CREDIT CARD CASH ADVANCES
Most credit cards impose both finance charges and a transaction fee for credit card cash advances. Most credit cards charge interest starting from the day of the cash advance. Furthermore, the transaction fee can be up to 4% of the cash advance amount, often with a minimum fee such as $5. Considering the high costs of credit card advances in terms of finance and transaction fees, try and limit cash advances drawn on your credit card.
5) CREDIT CARD PROTECTION SCAMS
Be wary of offers for "loss protection" insurance for your credit cards. Scam artists may fradulently promote worthless credit card loss protection and insurance programs. If you did not authorize a charge on your credit card, do not pay it. Follow your credit card issuer's procedures for disputing charges you have not authorized. According to the Federal Trade Commission, your liability for unauthorized charges to your credit card is limited to $50 per card.
