Know The Terms And Conditions Of Your Credit Card

Note: When signing up for a different credit card, it's always tempting just to fill out the form without looking at the terms and conditions. But if you don't know the terms that you are agreeing to, it can be a dangerous and expensive mistake.

So whatever credit card you use, make it your job to find out the terms and conditions that apply. It’s essential that you read and understand the dreaded small print on all credit card offers.

This might seem like an arduous task, but just consider how hard you'll have to work if you end up paying a higher interest rate that you should have and penalties that you didn't know about.

The terms and conditions may be printed in ultra small letters, but it still counts nonetheless. What seems like a generous package could be full of hidden catches and extra costs.

For example, be wary of special low rate introductory offers, especially when transferring an existing balance. When the special offer ends it will more than likely revert to the card issuer’s standard rate. A special rate of 5% APR which rises to a standard rate of 20% APR will mean that the interest you pay will quadruple.

Another common catch is where interest is charged on the sum borrowed from the date the purchases are made. Fair enough the card may have a really low rate but what good is that if it has no interest free period? It means that by the time your statement arrives and you pay the bill, interest will have started to mount up, even if you pay off the entire balance.

A little time spent reading the rules will allow you to save money on unnecessary costs and prevent you from receiving any nasty surprises. It will also help you to, stay on the lookout for the best deal.

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