Five Things You Should Know About Credit Cards

• Use them carefully. Credit cards offer great benefits, especially the ability to buy now and pay later. But you've got to keep the debt levels manageable. If you don't, the costs in terms of fees and interest, or the damage to your credit record, could be significant.
• Choose them carefully. Don't choose a credit card just to get freebies or because there's no annual fee. Look for a card that's best for your borrowing habits.
• Pay as much as you can to avoid or minimize interest charges. If possible, pay your bill in full each month. Remember, paying only the minimum due each month means you'll be paying a lot of interest for many years, and those costs could far exceed the amount of your original purchase.
• Pay on time. You'll avoid a late fee of about $35 or more. But more importantly, continued late payments on your credit card may be reported to the major credit bureaus as a sign that you have problems handling your finances.
  And if your credit rating gets downgraded, your card company could raise the interest rate on your credit card, reduce your credit limit (the maximum amount you can borrow) or even cancel your card.
  Late payment on your credit card also can be a mark against you the next time you apply for an apartment or a job.
• Protect your credit card numbers from thieves. Never provide your credit card numbers — both the account numbers and expiration date on the front and the security code on the back — in response to an unsolicited phone call, e-mail or other communication you didn't originate.
  When using your credit card online make sure you're dealing with a legitimate Web site and that your information will be encrypted (scrambled for security purposes) during transmission.
  Major credit card companies also are offering more protection by providing "zero-liability" programs that protect consumers from the unauthorized use of their card.

In general, only give your credit card or card numbers to reputable merchants or other organizations.