Signing up for a credit card can sometimes feel like you are signing your life away. There are many specific terms and conditions that vary from card to card. If you are considering finding yourself a credit card, there are some things that you need to be aware of before you make your final decision. The idea of being able to have something now and pay for it later is quite appealing, but credit companies make a profit from interest rates and fees. If you are armed with knowledge before you sign your life away, then you stand a much better chance of coming out a winner.
Always read the fine print. Never agree to anything before you read that little, tiny print at the bottom of a letter, form, or website. This is where credit card companies can get sneaky. Know what you are agreeing to. Do some research on credit card debt laws that are specific to your state. These laws vary from state to state, but there are laws in place to help protect consumers that wind up owed debts to credit card companies that they can not afford to pay. These laws can range from what the statute of limitations is on the number of years that a debt can be pursued to what tactics can be used in collections processes.
Also, get familiar with the new laws that President Obama signed into effect that pertain to credit cards. These offer consumers more control, giving them options to opt out of certain changes and to have more warning before changes take effect. Knowing exactly what your legal rights are will help you to make an informed decision about whether or not to get a credit card. Keep in mind that nothing comes for free. You will not only be paying back the purchase price, but you will be paying fees and interest. You have to judge for yourself if your wallet can handle the monthly payments. You have to know what to do in case you are ever not able to pay. Above all else, you have to be aware of what new interest rates and fees come into effect if you do fail to make a payment. This is where the credit card companies can really get their money back.