Getting a credit card is a big step, and if used correctly it’s a very useful tool for managing your finances whatever your circumstances.
That said, you shouldn’t go ahead with signing up for your first credit card, let alone taking out a second or even a third one, without understanding the answers to all of the following basic questions.
What are interest rates?
Interest isn’t just something that applies to things like personal loans and mortgages. With a credit card, you’ll be charged interest based on the proportion of your available balance you’ve yet to pay down when each month comes to an end.
What are the major credit card companies?
Big names like Citi, Chase, American Express, Capital One, Bank of America and Discover all have good track records of serving users.
Your existing bank will almost certainly have credit card products to consider, for example. However, better deals…
