Credit cards can be a very useful tool, but only if you use them sensibly. If you are easily tempted to buy items you don´t need, you can easily get into a lot of debt. Interest rates on credit cards are high, and your debt will increase rapidly if you do not pay it off as quickly as possible.
Some credit cards offer an interest-free period. Try to pay off your entire balance, or as much as possible, before this period expires. If you make only minimum repayments, you will pay more interest. Interest is also charged immediately on cash advances from a bank or ATM.
If you have a dispute with a business over a credit card payment, ask your bank to reverse the payment. The transaction reversal stays in your favour unless the business can prove that you owe them the money.
It is illegal for a business to send you a credit card, unless you requested it in writing (or it is a replacement or renewal card for one you have previously requested in writing). If you receive an unsolicited card, report it to us.
Last reviewed 11/04/2013