Getting a Credit Card
Obtaining credit is a big step. Before you sign on the dotted line, make sure you understand what you’re signing up for. Look at the following:
Interest Rates: How much do you want to pay to borrow money? 21%, 18%, 12%? Are you earning that kind of interest on your savings? No! Be smart; shop for the lowest interest rate you can find.
Late Payment Penalties: You could be charged a $35 late fee on a $50 monthly payment! Always make sure you know how much the late fees are. Then avoid paying them late by mailing your check several days before the due date.
Beware of Introductory Offers: Some credit cards charge little or no interest for the first six months to one year, but after that the rates go up. Read the terms of the credit card carefully so you know what the rates will be.
Annual Fees: Some credit cards have annual fees; some don’t. If the card has a fee, check out the reason for it. Does the card offer benefits, such as store discounts or travel rewards? If you don’t need the benefits offered, pick a card with no annual fee.