credit cards?

credit cards are confusing. What should i know before getting one? How can I avoid getting screwed over?

Public Comments

1. there are many thing s to look at... what I do is benefits rate credit limit and for how long the promotionla rate is for.....
2. check out what your "apr" (annual percentage rate) is. if you carry a balance, you can expect to pay finance charges. if you pay your balance off in full each month, then you avoid the interest. make sure there is not annual fee...there are too many cards out there that do not have an annual fee. and...make sure you get enrolled in some kind of program where you get rewards. there are many out there that do not have a fee for them. you might as well get rewards for using your card. for example...chase has a free cash rewards with the freedom card. no annual fee, and you earn 3%cash back for using your card.
3. The number one trap with credit cards is spending more than you should or can. You should be able to pay off your balance every month, if you can't, then you shouldn't be buying it. If you stick to this, then interest rates and balance transfer fees will not be an issue. It would be a good idea to start with a debit card first. That way you are limited to spending what's in your checking account.
4. READ, READ, READ. Card cards have a list of fees and policies. They send it to you when you get a card. But you can also call them and ask them about a copy before you apply. If they are a good company, they won't object.
5. The key, the whole ball game is interest rates. Now, the interest rate doesn't matter as long as you pay it off every month, there is then no charge. But if you roll over things you've charged by not paying off the ENTIRE balance, which you can do, then you get charged interest. You should NOT get a card if it is your intention to just have a way to get a bunch of stuff you want and pay it off slowly. You will soon find yourself with a $7734 debt with a minimum monthly payment of $275 of which only 50 goes to paying down the balance and the other 225 goes simply to that months INTEREST. ( I don't know the exact numbers, but just making the point.) You should only use a credit card to buy a few things that you are going to pay off completely each month and on time every month. It makes no sense to be paying three years from now for a cheeseburger you had last week! There is nothing inherently wrong with credit cards, but the companies are just on the lookout for people who will do the opposite of what I said above. They would be out of business in about two months if everyone would use them wisely.
6. Here is what I always look for: Are there any annual fees? If yes then I don't even bother. APR? I always make sure that it's fixed and not variable. (which can eventually be lowered) Of course it doesn't really matter if you pay it off every month. I also think about if it is a card worth having. It is a cool Sony Card or just a boring chase card. Are there rewards? Simple stuff like that.