For the majority of credit cards, interest is charged if the balance is not paid in full by the 'payment-due date'. You can benefit from up to 59 days interest-free credit depending upon when your purchase is made. Some card providers charge an annual fee which can be waived in certain circumstances. A specified credit limit for each cardholder is agreed when issued, based upon individual circumstances and this is reviewed regularly. Most credit card issuers insist on the cardholder paying a minimum amount each month or paying a percentage of any outstanding balance each month. In some cases the credit card company may charge a penalty for late or returned payments or for exceeding the personal credit limit.

Introductory rates offered by credit card companies may be lower than the standard interest rate for a specified term, this introductory rate is usually for purchases and balance transfers but it may also apply to cash advances. The interest rate charged on cash withdrawals is generally not the same as for purchases, there is usually a fee for using your credit card to obtain cash and an additional charge for using your card abroad. Balance transfer rates are applied to existing card debt that is being moved from one issuer to another or a consolidation of other debts, however these rates tend to be lower than standard rates and apply to the debt transferred for a specified term or until it is repaid in full. For cardholders who pay off their interest in full each month there are other benefits offered such as Loyalty points. Loyalty points are a way of gaining a benefit from using your card and can be used in different ways. Other cards offer free travel accident insurance, discounts on holidays, or free purchase protection insurance.

You would usually qualify for these cards by virtue of higher levels of income. They offer additional benefits such as free travel insurance, free card protection, savings on travel and hotels and free extended warranty for additional periods on many household appliances.

Some charge cards do not have a pre-set spending limit, however the requirement is that the user shall repay any balance in full each month. Most issuers charge an annual fee for membership. Charge cards are often used corporately to keep a monthly accounting of expenditure.

These are issued by credit card companies and operate as standard credit cards but a percentage of purchases made are donated to a charitable organization by the issuer.

Store cards are a form of credit card but are issued by or for a particular retailer and can only be used in that retailer's store or any other retail outlet within the retailer’s group.

A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. Always read the terms and fees before you agree to open a credit or charge card account.

The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed on the account and on your account statements. The card issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period. Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators change. Because the rate change is linked to the index's performance, these plans are called "variable rate" programs. If you're considering a variable rate card, the issuer must also provide information that discloses to you what the rate change will be, and how the rate is determined, which index is used and what additional amount, the "margin," is added to determine your new rate.

Be aware that most card issuers charge annual membership or subscription fees.

A card may include other costs. Some issuers charge a fee if you use the card to withdraw cash, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.

Federal law prohibits issuers from sending you a card you didn't ask for. However, an issuer can send you a renewal or substitute card without your request. Issuers also may send you an application or a solicitation, or ask you by phone if you want a card - and, if you say yes, they may send you one.

Federal law protects your use of credit cards.

An issuer must credit your account the day payment is received. The exceptions are if the payment is not made according to the creditor's requirements, or the delay in crediting your account won't result in a charge.

When you make a return or pay more than the total balance at present, you can keep the credit on your account or write to your issuer for a refund - if it's more than a dollar. A refund must be issued within seven business days of receiving your request. If a credit stays on your account for more than six months, the issuer must make a good faith effort to send you a refund.

Issuers must follow rules for promptly correcting billing errors. You'll get a statement outlining these rules when you open an account and at least once a year. In fact, many issuers include a summary of these rights on your bills. If you find a mistake on your bill, you can dispute the charge and withhold payment on that amount while the charge is being investigated.

If your card is used without your permission, you can be held responsible for up to $50 per card. If you report the loss before the card is used, you can't be held responsible for any unauthorized charges. If a thief uses your card before you report it missing, the most you'll owe for unauthorized charges is $50.

You can dispute charges for unsatisfactory goods or services. To do so, you must at first make a good faith effort to resolve the dispute with the seller. No special procedures are required to do so.

If you have bad credit you can still get a credit card although the cost will probably be more than regular cardholders experience. Your credit may not be as bad as you think, you may be trying to establish your credit rating, whatever your circumstances choose the deal that will help your credit rating in the future. Card companies look at your payment history and look for important stablizing factors, like a steady job and a more than 3years living at the same address. The card company’s job is to extend credit, they will process your application if at all possible, rather than see you go to another company.

Don't ask for too much when you apply and don’t apply to numerous card companies. All credit card companies can easily find how many times you've applied when they look into your credit report.

You could also consider a secured credit card. With a secured card you put up your own money, it acts the same as a debit card but while you are using it you are building on your credit rating

Card companies target both college students and teenagers because they are a fast-growing demographic of the population and they have money to spend. So it's no surprise when a 16-year-old receives credit card offers.

Look carefully at the rates of interest being offered, because whilst the cards are relatively easy to get the card companies often charge larger fees and interest payments and give smaller credit limits. Card companies know that although parents are not legally required to come to the rescue and pay the bills, situations often arise whereby they do step in to save the good credit history, therefore parent are strongly advised to make sure they read all the terms, especially with co-signed cards it's nice to know the rules beforehand.

Students should be advised to use these credit cards for emergencies only. All students and teenagers should remember that a good credit card history is of major importance to their futures. Misused, it can damage their credit records that will take years to rectify.

Parents also need to be careful in case teenagers apply and receive credit cards without the parents' knowledge. It's not supposed to happen to anyone under 18, but it can happen.

There are dishonest people offering “too good to be true” deals to people that have bad credit

Contact the card company that they purport to represent to make sure the cards are authorized

Some scammers will promise credit cards with some pretty good-sounding terms, however they sometimes require an advanced fee. Do not be drawn into paying in advance……you will not get the card and you will lose the fee

Federal law already protects card users. Consumer liability is capped at $50, and it is extremely rare to have a credit card company even ask for that money if you have promptly reported the card missing or stolen.