A credit card company sends you an attractive mailing. They say you are a select customer preapproved for a gold or platinum card. They offer enticing cash advances, balance transfers with little or no transaction fees, and no annual fee.It sounds nice and easy, but there may be more than meets the eye. You must look beyond the cover letter and examine all the information. Remember to keep reading after the asterisks at the bottom of the first page. Many cards have high APRs (annual percentage rates), charge high penalties if you miss consecutive payments, and charge even higher rates for cash advances. Cards with low rates may increase those rates if you miss a payment or fail to pay another creditor.

In this section, we will examine terms that are typically offered to consumers by banks and other issuers of credit cards. We'll use examples from actual solicitations and explain how they might affect whether a card offered to you is a good "fit" for your own credit needs.

Subsections

1. Choosing a Credit Card
2. Protections for the Consumer
3. Protections for Consumers Who Lease Products