Do you know what to look out for with your credit card? There are lots of details in the fine print of many card offers you need to understand before you apply.

Perhaps one of the trickiest is the clause found in many credit card applications that while they are starting you at a reasonable interest rate (depending on your credit score), if you are ever late on ANY payment to ANY company, they can increase your interest, sometimes up to nearly 30%. This is something you need to be aware of, as it is all to easy to miss a payment even if your credit is otherwise excellent.

This means you have to be very, very careful about when you send out your payments for your bills. Allow plenty of time for them to arrive at their destinations.

You also need to know if your low interest rate is short term. Most low or zero interest rate credit cards are good for only a few months or until the balance transferred is paid off. Payments on these cards always first go toward the lowest interest rate balance, leaving you to pay a higher interest rate on any part of the balance not covered by the low rate for as long as possible.

Watch out for balance transfer fees. These can eat away at any savings you make in the transfer.

As always, think about whether or not you need a new credit card before applying for one. It may be just as worthwhile to call your current credit card company and tell them about the offer, asking them to match it. You get the additional benefit of not having to worry about getting the new card in the mail and cancelling the old one.

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