Credit cards can be nasty beasts. Whether you are getting out of debt or using them for their convenience, security, or reward points it’s important to know each card’s exact attributes. Here is a list of 8 things you must know about your credit card.

1. Balance I put this one as number one because, in my opinion, it’s the most important. You simply must know how much you owe. Whether you pay your balance in full or are digging yourself out of a hole. Everything starts with the balance

2. Credit limit You want to make sure you keep your balance under the credit limit. You can’t do that if you don’t now exactly where your limit lies. If your account is over limit the fees will pile up faster than you can say “debt sucks”. Pay down an over limit card as fast as possible, regardless of the interest rate.

3. Interest rates Notice I said rates, with an S. You have more than just the interest rate on your purchases. You might also have a balance transfer rate or a cash rate. Know what each rate is and the balance in each category.

4. Cycle date The cycle date is the date your statement prints. It’s where one statement ends and the next one begins. It’s important to know because most cards calculate the interest based on the average daily balance. This means the earlier you make your payment the lower your average daily balance will be.

5. Due date Obviously you need to know this. It’s the last day you can make your payment and avoid a late fee. You must make your payment sometime between the cycle date and the due date.

6. Default rate and what can trigger it The default rate is a terrible thing. Being late or over limit too much can cause your interest rate to skyrocket. You will probably have to call customer service to find out exactly what triggers the default rate. The terms and conditions will be vague about this point. Take the time to make sure you know what not to do. You will want to avoid those actions at all costs.

7. Payment allocation Remember how different types of balances have different interest rates. Well, when you make a payment the credit card company most likely will pay the balance with the lowest interest rate first. Find out if this is the case, if so ask if there is a way to send a special payment to the balance with the highest interest rate instead. Some companies allow this and some don’t. You will still have to make the minimum payment the regular way, then you can send extra to your specified balance.

8. Know your rewards Are you earning rewards with your card? If you can earn rewards you might as well. Find out what type of rewards you can earn and how to maximize them. Do you earn 5% cash back on gas on one card and 3% on groceries on another. Then use them accordingly. Max out those rewards where you can. But only if you can pay the balances in full and are organized enough to keep track of those due dates.

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