Read the fine print carefully to avoid credit card pitfalls!

As the economy is recovering from the aftershocks of recession, credit card issuers have geared up to attract more consumers through their direct-mail offers.

But before you accept such an offer, be very careful. Once you sign up, you may be in for some unexpected surprises like a sudden rise in interest rate or a fee you never anticipated!

The only way to avoid such a situation is to read the fine print thoroughly before getting a new credit card.

Most consumers compare credit cards based on initial APR, but fine print details explain how missed or late payments trigger steep APR hikes.

Combining debts via balance transfers sounds attractive, but issuers often charge 3% to 5% of the balance transferred. On a $10,000 balance, that means $300 to $500 upfront.

Some credit card companies utilize double-billing cycle rules or confusing statement deadlines that add extra days of interest charges if full balances are not paid early.

Reward cards advertise perks in bold text while obscuring annual membership fees in the fine print. Ensure your annual rewards value realistically exceeds annual fee costs.

Certain card issuers acquire old debts and insert clauses in fine print attempting to re-bill old obligations onto new credit card statements. Always verify agreement terms before signing.