Today is the last day of Consumer Awareness Week, and we’re leaving you with some tips about getting your first credit card – specifically, about what to think about before signing the agreement. If you’re not careful when using your credit card, interest rates, additional charges and late fees may cause the item you purchased to cost a whole lot more. So before you sign that credit card agreement, stop and take 5 minutes to think about these things.
- Know the interest rate. Research how much interest you’ll pay and find out whether the rate is “introductory” (meaning that it might be subject to increase down the road)
- Weigh the benefits. While some cards may offer enticing rewards, there may be associated fees. Consider the total cost compared to your credit card usage to find out if the cost exceeds the rewards.
- Are there extra charges? Find out if there are fees for taking a cash advance, or for transferring a balance from one credit card to another.
We hope you enjoyed all the contract information we shared during Consumer Awareness Week!