Please remember these important facts about credit cards:

Late payment fees are now averaging $29.00 per month. This can add up quickly and in some cases may wipe out the small amount of your payment going to principle.

Over the limit fees are also averaging $29.00 per month. Like late payment fees, these can add up quickly and in some cases may wipe out the small amount of your payment going to principle.

If your credit card statement shows that you have an outstanding balance, but your minimum monthly payment is not required, it is strongly recommended that you still make a payment.

Many consumers think this is a consumer incentive or a bonus.  What some consumers don’t realize is that they are still paying interest on their outstanding balance. This means that the only bonus is to the credit card company. They will now earn more interest on your money, and you will ultimately owe more money. Unless your credit card company is offering an incentive for a specified period of time at no interest, don’t fall for this gimmick.

Some credit card companies will offer no interest for a period of time. This is usually in connection with new credit cards or new purchases.  Make sure you understand all the requirements in order to receive the special offer. Some offers only apply at specific retailers, while others only apply if you charge over a specific amount of money in a single transaction.  Most do not apply to cash advances. 

We can’t begin to mention all the possibilities. There are as many rules as a marketing department can come up with. Make sure you read the fine print. Also, keep in mind that credit card companies may charge you all the back interest if there is an outstanding balance at the end of the offer

The interest rate you pay on retailer charges and the interest rate you pay on cash advances may be different. In many cases cash advances can be much higher and are usually the last to be paid. This means that your minimum payment will be used first to pay down your retailer charges and if any amount from your monthly payment is left, it will be used to pay off your cash advances. Paying higher interest rates combined with cash advancement fees and possible bank convenience charges, this can end up costing you a lot of money.

Beware, if you are offered cash advances at no interest charge make sure you know the terms and conditions. Remember, when the offer ends, and if you still have an outstanding cash advancement balance, you may find your interest rate jumping higher than you expected. We can’t stress enough how important it is to understand the terms and conditions of each credit card you use.

When offering a new credit card, many companies will offer incentives to new card holders. These offers may include very low or no interest for a short period of time, no cash advance fees, no annual fees etc. When the offer period ends make sure you understand what to expect. Many cards will jump to 8% or even as high as 24%.