4. You should know what Annual Percentage Rate means

Annual Percentage Rate mostly known as APR is the amount of interest you pay every year on your borrowings. You need to pay finance charges depending on the APR. In simple words higher the APR you will pay more finance charges. The minimum repayment you make is basically the interest but paying a little more will help you in the reduction of your past balance. APR is one thing that makes a hole in your wallet. So try to keep it as low as possible.

5. Know about your legal right

As a cardholder, you have every right to be treated fairly. The Truth in Lending Act requires issuers to explain all the terms of the contract in detail, in a language the average adult can understand. If you have any problem regarding your bill then the Fair Credit Billing Act gives you the right to dispute and correct errors, and protects your credit rating during the process.

Thus there is no secret behind using your credit cards wisely but if you get a low-fee account, always pay on time, and carry no debt from month to month. Even better, if your card has a good rewards program, you can even come out ahead by using them.

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