Always Read the Fine Print ...

Credit card fine print contains the terms and conditions for all the fees, charges, interest rates, and rewards rules that apply to your credit card. It is essential that you read the fine print several times through to get a full understanding of what your annual and monthly APR will be, in addition to the annual fee, late fees, balance transfer fees, etc.

You should thoroughly read and understand the sections that contain interest rate and APR information, because a single credit card could have multiple APRs. APRs for purchases are generally lower than those for cash advances and balance transfers, so make sure you know the exact APR that will be charged for every transcaction you make on your credit card.Also, the fine print will explain when and how the credit card company can raise your interest rate.

The grace period for purchases, balance transfers, and cash advances has shrunk dramatically in the last few years. The grace period is simply the time period you are allowed to carry a balance before interest will be charged. Some are as short as 20 days, so carefully read the terms and conditions to find the grace period foryour credit card(s). As always, if you pay off the full balance each month, you will not be charged interest on purchases, although you may pay interest on cash advances from the day you withdraw the money.

All fees associated with your credit card will be listed in the fine print.The annual or yearly fee to have the card, late, over the limit, cash advance, and balance transfer fees can and will be charged by the issuing bank anytime you use your credit card. Various other fees could also be hidden in the fine print, so pay attention to this section. Read your monthly statement carefully in order to find erroneous or unexpected fees.

Finally, read the fine print of the terms and conditions to understand what kind of credit card rewards program is attached to the card. Know what purchases qualify for points, air miles, rebates, etc. You can also discover how the credit card company disburses your rewards and how you can redeem rewards points.