Many people know the pros and cons of getting a credit card, but not many know how to make sure they're getting the best deal by being careful about the credit card company they choose and making sure they've read the terms and conditions so they know all the cost centres that will affect them during their contract.
Be careful of:
Annual Fees: Not all credit card companies charge an annual fee, but not all companies that do charge an annual fee are necessarily the most expensive. Remember that different credit card companies will charge you in different ways. Knowing how you are charged will help you get the best deal and plan for these costs.
Late Payment Fees: If you pay your credit card bill later than expected, you will have to pay a late payment fee as well as the interest that is still due. The credit card companies say this is fair because it could hurt their cash flow and make it so their financial plans don't work out the way they thought they would. When figuring out how much a credit card will cost, late fees should be taken into account. A great way to avoid this is to set up a direct debit so that your payment comes right out of your bank account.
When You Go Over Your Limit: If you go over your credit limit, you will probably be charged unless you talk to your credit card company first. Before you sign a contract with a credit card company, you should know what these fees are. To avoid these fees, many people choose to get another credit card to pay off the limit. Others may look for short-term solutions like an overdraft or long-term solutions like a bank loan. Please be careful not to use your credit card to buy things you can't pay for.
Avoid:
Small Companies: If you stay away from small companies, you won't have to deal with problems that you wouldn't have with big, well-known companies. If a company is a public limited company or a listed company, or if it is owned by one of these, then PR factors and media pressures/influences reduce the risk of unfair contract terms and a move away from best practises by a large amount.
High APR/0% introductory APR: If you sign a contract with a credit card company that gives you a great introductory rate but a higher rate in the long run, the company is betting that you won't be able to handle your money well enough to make them money. If you don't have full control over your money and end up making less than you make, you should stay away from these.
