Updated July 2020

Using a credit card is a great way to establish credit and can pave the way for more advanced borrowing like a car loan, personal loan or mortgage. Unfortunately, not all credit cards have good terms and some cards come with extra fees and penalties that can be costly to the unsuspecting consumer. 

This is why it is important to thoroughly understand the terms of any credit card you use and make sure that you understand how the credit card companies make money on your debt.