How to avoid getting ripped off on credit card debt: The 6 steps you need to know
Here’s a look at the 6 things you need read to avoid being ripped off by a credit card company.1.
Know your credit card limits.
You can buy unlimited credit with a credit or debit card.
If you don’t know how much you’re spending each month, you may not be able to pay your balance on time.2.
Don’t pay more than you’re actually spending.
Some credit cards allow you to spend more than what you pay in interest.3.
Consider signing up for an installment plan.
Many credit cards offer a lump sum payment option for those who are not able to make regular payments.4.
Pay off your credit cards on time with interest.
Some cards require you to pay off your debt before you can use the card.5.
Learn the right credit card interest rate.
You may need to pay interest on the debt before it’s due.
If your credit score is low, you’ll pay interest over time.6.
Avoid the “hidden” fees.
Credit cards don’t charge fees when you spend, such as interest or fees for certain services.
But some cards will charge you fees that you won’t notice unless you look at your card statement.7.
Check your balance.
Many card issuers let you know your balance at any time.
If the credit card issuer charges you interest for certain payments, it’s important to look at that statement and see if there’s anything that you can do to avoid paying interest.8.
Look at the annual fee.
The annual fee is the most common charge for many credit cards, but it’s not a mandatory charge.
Some card issuances, such a Chase and American Express, allow you the option of paying this fee at any given time.
The fee is calculated by the card issuer and will be reflected on your statement.