How to avoid problems with credit card offers and take care of your financial situation

Avoid too many credit cards: Most people get in trouble by opening up too many credit card accounts. Too many cards mean too much opportunity to get into trouble. It is recommended to only have one or two basic cards. This should be plenty to fit your needs.

Be careful of scams: Credit card companies do not care about your personal financial situation and are not concerned if you have already been accumulating debt over your head- they will still send you credit card solicitations in the mail and on the internet. With all of the online credit card offers available, it is easy for a card holder to think that too many cards are appropriate for them. It does not matter which card (VISA, MasterCard, American Express or Discover), they send you mail and email all which can set you back. You probably are not the only 'instantly approved' customer these card carriers have so settle back and forget about it!

Consider all of your credit card's terminology and read the finer print: You never know what you are getting until you read the finer print that your credit card offers. Obviously the credit card companies will advertise the lowest rates possible but will then raise them in accordance to a specific period. If you are a credit card holder who pays their balance off in full each month than the interest rate will not really apply to you. However, you should still read the finer print because you need to be aware of annual fees, late charges and other fees. There are fee free cards out there so look for them! These fees just add up to extra costs for the card holder.

Read the entire solicitation email or mail: Do not fill out an application, whether it is applying online for instant online approval or whether it is through 'snail mail' do not fill one out until you know for sure what you are getting. If you have any question make sure you contact the card carrier and ask them about the specific card.

Do not accept low 'teaser' rates: If you have a credit card that offers low rates or is fee free for a few months before skyrocketing up to huge increases, turn it down. You do not need a card that looks good initially and than proceeds to hammer at your wallet with interest rates after the 'teaser' rates expire. When choosing a card, choose one for life.

Be wary of varying rates: Varying rates of interest are tough to figure out so be careful of them. Avoid any credit card that offers these variable rates because if you cannot figure them out than how can you expect to accurately figure out how much you will pay out each month.

Credit card offer's late payment charges and penalty rates

A card with perfect everything (interest rates fees, etc.) can turn bad in a hurry if you miss a payment. Late charges can accumulate significantly if you miss one or two payments. And something else that most credit card companies neglect to tell holders is that once you miss one payment than you will start being charged a higher rate of interest automatically. At least, this is something to be aware of if you let your balances carry over each month.

Credit card offer's grace period

A grace period is the time that you have from the beginning of your billing statement to pay off your balance before being charged more in finance charges. Before selecting a card make sure you have a good idea of what your credit card company charges in extra fees and what their grace period is. Most cards run between 15 and 30 days for a grace period.

Pay off more than just the minimum each month: Consumers often think that just by paying off their minimum payments each month that they are doing enough. This is not the case. Paying off only the minimum payment will hurt your credit because it looks as if you as the consumer has shaky finances and should not be trusted with more money (i.e. credit limit increase). This is often an unknown quality of credit cards so watch out for minimum payments!

Keep your priorities straight: If you do happen to be running up a debt problem with your credit card, stop using it. If you have no option than to pay only the minimum payments for a few months then do this, as long as your money is going to your necessities. There are all kinds of ways to get yourself out of debt so make sure you do not just further your problems. Be wary of home equity loans because it is not worth risking your biggest asset just to pay off your credit card!

Don't jump from card to card just for low rates: If you spend all of your time changing up credit cards because of low teaser rates or fee free options than you probably have too much time on your hands as it is! Also changing your credit cards up all the time hurt your credit because it looks like you are hurting for cash and looking for the easy way out. It is always better to keep your cards for as long as you can to build up a trust level with any of the major banks (Advanta Bank, First Premier Bank, Chase, Citibank or HSBC).

Consider canceling cards: If you have a card you don't like or have found a better card, do not hesitate to cancel your current card. While making a habit of this is not a good thing, occasionally changing up cards is not the worst thing a card holder can do.

Stay within your lifestyle: Many card holders try to spend beyond their abilities so do not be one of them! Buying things that you cannot afford is not advisable and you will never be able to live forever off of borrowed money so don't even try it now - it is only temporary. Don't keep applying for a bigger credit limit if you can't even afford the one you have currently.

Know your rights: If you ever have a dispute over your credit card, whether that means protection or anything else you should read up on your credit card's policies to see what rights you have in what situations. In the rare case that you do have a problem, you will at least be able to take care of yourself.