4. Look for fees and penalties: There are many ways that a credit card issuer can squeeze money from you. Thus check for the fees and penalties that are included in the card. Few common charges include fees for transactions, such as balance transfers and cash advances, or for asking to increase your credit limit or make a payment by phone. The credit card issuers will also charge you if you pay your bills late or if you cross your credit limit. Therefore, always look out for cards that have reasonable fees, for example, look for cards with no transaction fees and zero percent interest for at least 12 months. Avoid paying extra for rewards programs. There are many card issuers who doesn’t charge extra for them.

5. Check for the grace period: Have you heard of grace period? The grace period is the time between when you make a purchase and when you start accruing interest. It is actually the number of days given to the borrower to pay the credit card bill over the due date. Always remember credit cards are not free money. Make yourself disciplined, to make the full payment every month in order to avoid any interest charges and also to build up a good credit score, and use it as you would cash. Few bad credit cards will start charging you interest from the moment that you make a purchase. These cards are bit difficult to pay off as you will always accrue the interest charges. However, the best credit cards will give you at least 21 days before they start charging you interest on your new purchases. Thus, longer the grace period, the more money you save.

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