 TITLE: 8 Things You Should Do When You Get a New Credit Card CONTENT: Understand the Terms and Fees\n-----------------------------\nYour new credit card comes with a lot of fine print. While you don't need to pore over every word, you should review some key points to make sure you understand the basics of your card's terms and fees.\nStart by checking your credit limit. This is the maximum balance you'll be allowed to hold on your credit card. Don't plan to charge up to your credit limit; instead, aim to restrict your balance to about 30% of your limit or less. Your credit utilization—your total balance as it relates to your total credit limit—is a major factor in determining your credit score. If you're using most of your available credit, your score will suffer. Aiming for below 30% utilization is a good rule of thumb, but your score will likely see bigger gains as utilization gets closer to zero.\nThe most important credit card terms and fees you should know are easy to find: Look for them at the beginning of the documentation that comes with your card in what's called a Schumer box. Here's what you'll find in a Schumer box:\n*   **Annual fee**: Cards that offer cash back, benefits and rewards may charge an annual fee. Make sure you know if your card has a fee, what that fee is and when you'll be charged for it.\n*   **Purchase APR**: The annual percentage rate (APR) is the interest rate the card issuer charges you on any balance that you carry over from month to month.\n*   **Grace period**: Most credit cards offer a grace period between the end of the billing cycle and the date your payment is due. Interest on your balance doesn't accrue until the end of that grace period, so if you pay your balance in full by the due date, you won't pay any interest. The grace period is typically about 21 days.\n*   **Minimum payment**: This is the minimum you must pay by the card's due date each month to keep your account in good standing while carrying a balance. It's almost always a good idea to pay more than your minimum balance. Find out how minimum payments are calculated.\n*   **Late payment fee**: If you don't make at least your minimum payment before your payment due date, most cards charge a late payment fee.\n*   **Returned payment fee**: If your payment is rejected for insufficient funds, the card issuer usually will charge a returned payment fee.\n*   **Penalty APR**: If you fall behind on credit card payments by 60 days or more, the card issuer may charge a penalty APR that applies not only to your outstanding balance, but also to any new purchases going forward. This rate will be higher than the normal purchase APR.\n*   **Balance transfer fee**: If you plan to transfer a balance from a high interest credit card onto a new, lower interest one, be sure you know what the balance transfer fee is. It's typically 3% to 5% of the amount you're transferring.\n*   **Balance transfer APR**: When you transfer a balance to your new card, the amount transferred may be subject to a special APR. Many cards have a promotional 0% balance transfer APR period that may allow you to pay off a transferred balance without incurring additional interest.\n*   **Cash advance fee**: If you use your credit card to get money at an ATM, this is called a cash advance. Not only will this advance show up on your next statement, you'll also be charged a fee (typically 3% to 5% of the total amount).\n*   **Cash advance APR**: Most credit cards charge a higher APR for cash advances than for purchases, and there's no grace period—interest on the balance begins accruing right away. This is a good reason to avoid taking cash advances.\n*   **Foreign transaction fees**: It's convenient to use a credit card when making purchases overseas, but first know whether your card charges a foreign transaction fee (typically 3% of the purchase amount).\n*   **Additional card\/authorized user fee**: Some cards charge an annual fee for each authorized user you add to your account.\nIf your new credit card came with any special promotional rates, check what they are and when they expire. For instance, some cards waive the annual fee the first year or offer 0% APR on balance transfers or new purchases for six, 12 or 18 months. Know when these terms expire so you don't get hit with an unpleasant surprise in your monthly statement. END