Understanding your credit card

Make sure you understand your credit card fees by reading the terms and conditions of your agreement, and by paying off your balance every month.

Many credit cards carry a variety of fees you may not discover until you have to pay them. These include application and processing fees, late payment fees, transaction fees, fees for exceeding your credit limit, and balance transfer fees.

How to keep costs down

• Make sure you know when the introductory offer on your credit card ends and when you start paying interest. Also, check what your interest rate is.
• Pay off your balance monthly to avoid paying penalties and interest.
• Understand the allocation of payments when you pay off your balance.
• Read the terms and conditions of your credit card agreement. It outlines all the fees and charges associated with your card.