TERMS AND FEES

Be sure you understand your credit-card agreement. (Hint: "Terms" is another way of saying "this is what you agreed to when you applied for this card.") This means that you should read the fine print.

First, know your credit limit. You can be charged extra fees if you go over that limit. It's a good idea to start with a small limit of, say, $200. Then you won't be tempted to get too far in debt.

Next, understand your "grace" period. That's the time you're allowed before you have to pay a bill—typically this is 25 days. Watch out for cards that have no grace period (that's in the fine print, too); these cards start charging you interest immediately after you purchase something with them.

Finally, understand what fees you'll have to pay. If you are late with a payment, the company can charge you a late fee (as much as $25 to $35!). Some accounts let you pay online a few days before they are due, but if you mail in your payment, be sure to allow at least five to seven business days for the payment to reach the lender. Also, some credit cards charge you an annual fee just for the privilege of using them.

Here are Other Areas to Link to:

CREDIT CARD: HANDLE WITH CARE
INTEREST: THE FINE PRINT
USE YOUR CREDIT WISELY
CONTROL YOUR SPENDING