Don't be fooled into thinking that banks provide credit to consumers for free. Most banks have fees that cardholders may pay depending on circumstance. Pay close attention to what you are being charged for the privilege of owning a card.

Interest Charges
Credit card interest rates can vary widely, depending on the type of card and the credit rating of the cardholder. Always know how much interest your credit card is charging. Annual Percentage Rates (APR) vary from year to year, and your credit card company will notify you if the percent changes, but the notification is not always easy to understand or find.

Annual Fees
Some banks charge cardholders an annual fee-typically between $15 and $50. The cards are normally for a special rewards program, like airline miles, free gas, or money rebates. Determine whether the annual fee is worth the potential benefit.  

Late Charges
If the credit card company receives your payment after the monthly deadline, you will be charged a late payment fee. Some cards with low rates for on-time payments apply a very high APR if you are late a certain number of times in any specified time period. These rates sometimes exceed 20 percent. You'll find the information in the small print of the credit agreement. Read it, because it can make a big difference to your budget.

Teaser Rates
These extremely low rates last for three to six months and then rise. Because teaser rates don't last, you should not consider them when making a decision in getting a card. Some consumers change credit cards often enough to take advantage of a string of teaser rates, transferring their balances each time to pay lower interest on their credit card debt. This strategy requires a great deal of time, and attention to detail. It's easy to forget and incur added charges.