Excessive Debt
It is all too easy to run up more debt than you can handle. Once you have one credit card you will get many offers for additional credit cards in the mail. In a short time your own credit card company will offer to raise your credit limit. It is all very flattering, but it is usually in your best interest to turn these offers down.
Grace Periods
Many credit cards don't charge interest on your purchases until a certain date. For example if you buy something on the 11 th of May and your monthly payment is due on June 7 th that charge is carried for 26 days interest free. That's your grace period. BUT other credit cards don't offer a grace period. From the minute you buy something interest is being charged. Over time that interest can really add up.
Bait and Switch Marketing
You want a credit card; you're offered the new "Titanium" card with a $5,000 credit limit at 6.9% interest. Sounds pretty good; you fill out an application. But when you get that new credit card in the mail be sure that you received the card you applied for. It is perfectly legal for the credit card company to send you the "Basic" card with a $1,000 limit and a 18.9% interest rate, if it determines that you don't qualify for the card you applied for. It might sound shady, but you agreed. It was on the application there in the fine print.
Changing "Terms and Conditions"
Every once in a while you will get a small legal document from your credit card company in the mail. Don't ignore it. It may be a change in the "Terms and Conditions" of your credit card agreement. The interest rate may have been raised, the grace period may have been eliminated, or an annual "membership fee" instituted. Read those documents carefully and close the account if you don't like the changes. The card you have now may not be the card you had last month.
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