Credit cart 's Be aware - most creditors reserve the right to change any of the terms .

 

Read the agreement carefully, because once you sign, you form a legal contract and consent to the terms set by the issuer. These include:

• Credit line/limit. The total amount you may charge, including interest and fees.
• Annual percentage rate (APR). The interest charged on carried-over balances. It usually stipulates a higher rate for paying late, charging beyond your limit, balance transfers, and cash advances, too.
• Interest calculation method. Most calculate interest charges by averaging the daily account balance, then multiplying that figure by the periodic rate (APR divided by the number of days in a year).
• Fixed or variable APR. Fixed rate APRs have consistent interest rates. Variable APRs are tied to an index (often the prime lending rate, which is set by the Federal Reserve) and thus fluctuates.
• Grace period. The grace period is the number of days (generally between 20 and 30) you have to pay in full before interest accrues.
• Fees. Ordinary fees include those for cash advances, balance transfers, paying late, exceeding your credit limit, and sometimes an annual fee. Avoid cards with nonstandard fees, which Manning lists as application charges, not using the card, calling the creditor if they don't have an 800 number, online account management, and terminating the account.

However , most creditors reserve the right to change any of these terms -- so check your mail vigilantly for adjustment notices. And because credit cards offer a revolving balance option, you aren't required to pay the entire loan -- as long as you make at least the minimum requested payment, you can carry the remainder over to the next month. Interest will be added to the balance.
As a cardholder, you have a legal right to fair treatment. The Truth in Lending Act requires issuers explain all the terms of the contract in detail, in language the average adult can understand. Problems with your bill? The Fair Credit Billing Act gives you the right to dispute and correct errors, and protects your credit rating during the process.

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Ultimately, there is no secret to using credit cards wisely. If you get a low-fee account, always pay on time, and carry no debt from month to month, charging is free. Even better, if your card has a good rewards program, you can even come out ahead by using them.