1. Before you enter the world of credit, you need to understand the various options that are available to you. Which of the preceding factors would be most important in your choice of a credit card?

1. Department stores and gasoline companies are good places to obtain your first credit card.
2. Bank credit cards are offered through banks and savings and loan associations. Annual fees and finance charges vary widely, so shop around.
3. If you plan on paying off your balance every month, look for a card that has a grace period and carries no annual fee or a low annual fee. You might have a higher interest rate, but you plan to pay little or no interest anyway.
4. Watch out for creditors that offer low or no annual fees but instead charge a transaction fee every time you use the card.

5. If you plan to carry a balance, look for a card with a low monthly finance charge. Be sure that you understand how the finance charge is calculated.
6. To avoid delays that may result in finance charges, follow the card issuer’s instructions as to where, how, and when to make bill payments.
7. Beware of offers of easy credit. No one can guarantee to get you credit.
8. If your card offers a grace period, take advantage of it by paying off your balance in full each month. With a grace period of 25 days, you actually get a free loan when you pay bills in full each month.
9. If you have a bad credit history and have trouble getting a credit card, look for a savings institution that will give you a secured credit card. With this type of card, your line of credit depends on how much money you keep in a savings account that you open at the same time.
10. Travel and entertainment cards often charge higher annual fees than most credit cards.
Usually, you must make payment in full within 30 days of receiving your bill, or no further purchases will be approved on the account.
11. Be aware that debit cards are not credit cards but simply a substitute for a check or cash. The amount of the sale is subtracted from your checking account.
12. Think twice before you make a telephone call to a 900 number to request a credit card. You will pay from $2 to $50 for the 900 call and may never receive a credit card.