Listed below are steps and precautions to make sure you fully pick and understand your credit-card plan.

Shop around for credit-card terms that are best for you Interest rates and other terms vary widely. There are also different types of cards, such as secured cards that require a deposit to cover any charges that are made, unsecured cards that allow you to charge something and pay later. Watch out for things like fixed rates that may change in the future and introductory offers. Make sure you know what kind of card you’re being offered and what type of card meets your needs best.

Make sure to understand the terms and conditions Before applying for and accepting a card, make sure you understand the terms and conditions of the credit-card plan. Read the fine print. Ask yourself whether you are able to afford the card based on your on your income, employment, your current debt amount and your credit history. Review the disclosures of terms and fees to understand the rules for the card and the fees for breaking those rules.

Pay bills on time and in full Pay bills promptly to keep finance charges as low as possible. Watch out for carrying balances. Some cards charge 20% or more in interest. As a general rule, pay your credit card bill on time, and in full when possible. If you don’t, you’ll have to pay finance charges on the unpaid balance-and it takes forever to get caught up if you just pay the minimum.

If you can’t pay your bill in full then pay more than the minimum Since credit cards usually carry high interest rates, you will end up paying more overall if you make only the minimum payment. Let’s say you have a balance of $2,000 with an interest rate of 18 percent. If you make only the minimum payment of $40 every month, you will wind up paying $4,927 in interest and it will take you more than 30 years to pay it off. By simply doubling your minimum monthly payments, $80 in this example, you will be debt-free in less than three years, and pay $526 in interest.

Keep records Save your credit card receipts. Compare them with your monthly bill. You should promptly report problems to the company that issued the card.

Protect your credit cards Identity fraud is one of the fastest growing financial frauds in America. It is very important to protect your credit cards and account numbers to prevent unauthorized use. If you decide to discard your receipts or credit-card statements, it is always best to shred them.

Hopefully, the information above can help you make an informed decision in choosing and using credit cards.