Applying for a credit card is really easy; just fill in a simple form and your set. Of course, one of the main problems with credit cards is that using them is just as easy, and if you’re not 

careful then you might find yourself in a bit of trouble at the end of the month when that credit card statement comes though the post.

The statement can be quite confusing to the untrained eye, which is why you need to be able to understand all of the different terms that are used on it. The terms and conditions themselves should not surprise you in the least, don’t forget that these were printed on the application form that you filled out in order to get the card. The APR was also present when you signed, so it shouldn’t be a shock to you either.

The problem is though, that most people don’t even read the terms and conditions, or if they do they only glance over them and don’t actually take an in depth look. If you are unsure of what everything on the statement means, we will go over what they all mean now.

• APR – this is the abbreviation for Annual Percentage Rate. The APR is the rate of interest that you pay on the balance that is left on the card after you have made your monthly payment. APR can vary greatly from company to company, so try and get yourself a card with a low APR on it. APR comes in two different forms;
•  Fixed – meaning that it doesn’t change.
• Variable – which means that the company is able to change the APR however much they want at any time without having to give you prior warning. This can be used as a form of punishment should you be late on your payments or not make them at all. If this happens most companies will raise your rate and there is nothing you will be able to do about it.
• Due date – this is what day of the month you have to make your payment by. Should you miss this date, then most companies will not be forgiving. For this reason you should change the billing cycle that you are on so that it corresponds with a time when you’ll have the money to pay the debt off. Unfortunately, not all companies will let you change this, so this may be a factor that you want to consider before choosing a credit card.
• Minimum Payment – This is the amount of money that you are required to pay each month. You have to make sure that you pay at least this amount each month and not a cent under, even if it is just a cent under, the credit card company will see it as you not making the minimum payment and it may lead to you getting penalized.
• Credit Limit – this is the amount of credit that you can actually have on your card. It is a figure based off of your credit limit and what the company is willing to offer. This figure is likely to increase over time if you make your payments in full and on time. If you go over your credit limit then you may have to face penalties. The purchase that you are trying to make might be denied or you will get charged with a fee. This can be a very costly mistake, so you should try and have a rough idea of what is on your card.
• Reward / Bonus Points – these are points that you earn as you use your card. You will get these points in some form of ration, for example every ten dollars earns you one points. These points will be on your statement and every time that you use them they will be deducted from your total.

Should there be any other terms on your credit card statement that you aren’t sure of, call the company that you are with and they should be able to tell you what they mean. These terms are also likely to be on the agreement that you signed, so you could also get this out and try to find it there. You should be sure of what everything means so that you don’t end up paying for something that you don’t know is there or won’t use.