We are getting now to last 5 of dirty tricks credit card companies play to their clients. The sixth trick is designed to work on psychological plan: company is increasing your credit limit. You didn’t ask for a limit increase of your credit but company gave you possibility to spend more money. This is a psychological trick to make you spend more money on your credit card trick. Another bad surprise is to come back from your vacation and find out that you have been charged more for amounts spent during your foreign trip. The commission charged for amount spent outside country is much higher than usual.

One of new scams that have appeared in last years is card cancellation fee. This fee was adopted because a large number of clients of a certain bank discovered extra charges and they rushed all to cancel their accounts. The bank responded immediately by adopting a policy of charging a fee for closing an account. This practice was also adopted by other companies. There are also other scams like penalization for having a big balance or charging credit insurance fees. It is important to know these procedures so you don't get taken advantage of and you can help put an end to these tricks by giving your business to companies who do not employ them.

A credit card allows cardholder to borrow as much money (up to their credit limit) as they like, when and where they like, without having to get permission from their bank manager.

All credit cards have finance charges for not paying your balance in full each month, but you could save a lot of money by shopping around for credit card that offers you best terms.

Shop for a card with an interest free period that gives you enough time to pay your bills on time without charging you interest. Credit cards with no interest free period start charging you fees as soon as you buy something on your credit card.

A credit card is convenient for making purchases. It is also best way to create a credit history for you, and this is necessary to do things like buy a home.

It is very easy to lose control of your spending habits if you rely on credit cards too often. While they can be very useful, credit cards can also be risky. Even people who are usually good with their money get into trouble with credit cards. The problem is that people use their credit cards too often and let their debt add up. Then they can only pay back small amounts at a time. This ends up costing a lot of money in finance charges.

Before applying for a credit card, you should decide why you want one, and make sure you can use it wisely.

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