Similarly, you have to check carefully what the rewards are, how and how often you can get them. As you can guess, there are different types of limits that may be applicable. For instance, some rewards may be available for only the first six months of the contract.

More importantly, you should do your best to avoid transferring balances on reward cards from one month to the next. This usually results in higher interest charges as well as in a loss of some or all of the privileges you have. It is not uncommon for borrowers to automatically lose a monthly reward in case they transfer a balance from one month to the next.

Know the risks you are taking with deferred interest credit cards and manage the borrowing with them effectively. Unless you repay your debt in full before the end of the promotional period, you will get charged interest on the balance for the entire promotional period. Additionally, most deals require you to start making the installments for the repayment within a certain period of time after borrowing. If you do not, you are automatically charged interest. Thus, you have to make sure you have the financial ability to follow the repayment plan exactly in order to avoid incurring greater costs than you have expected.

Last, but not least, you have to keep in mind that with the new act on credit cards, you are entitled to receive information about any changes in the terms and conditions of the contract 45 days in advance. You have the right to refuse to accept these changes. In this case, the lender can either keep your contract as it is or close your account without any penalties. Still, you will have to repay any outstanding debt. Know your rights and do not let lenders swindle you.