Ah, the credit card. It’s a beautiful thing, isn’t it? You can buy things and pay later, as long as you make your payments on time each month. But even though credit cards have been around for decades, many people still don’t understand how to use them properly. They have questions like, “What is the average credit card interest rate?”, “How to find the right credit card?” or “Are credit cards a safe option?” So let’s clear up a few misconceptions about using credit cards so you can be sure that you’re getting the most out of your plastic pleasure stick:

Credit cards can help build credit

Credit cards can help build credit. Getting approved for a mortgage or car loan can be difficult if you don’t have a lot of credit history. By using your credit card responsibly and paying on time each month, you’ll be able to build up your score over time and make it easier for yourself when it comes time to take out bigger loans in the future.

Credit cards offer perks

Credit cards can help you earn rewards, build your credit and establish a good credit history. You can get access to things like airline miles, cash back or frequent flier miles with purchases that you make with your card. When you use the card responsibly (paying off the balance each month), this will help to improve your credit score. This is good because lenders use the information in your credit report when deciding whether to approve or deny an application for loans or lines of credit.

Comparing credit cards

Once you’ve decided on a particular credit card, it’s time to compare it. As per the experts at SoFi, “The credit card interest rate that applies may differ depending on how you use your card.” There are several ways to compare the cards:

  • Compare credit cards with the same interest rate
  • Compare credit cards with different interest rates (higher or lower than yours)
  • Compare credit cards with different rewards and perks (higher or lower than yours)
  • Compare credit cards that have an annual fee and do not have an annual fee

Annual Percentage Rates

The Annual Percentage Rate (APR) is the interest rate you’ll pay on your balance when you carry a balance from month to month. This can be a good thing or bad: if you pay off your bill every month, then the APR won’t matter to you at all. But if you don’t pay off your entire bill and have a balance, then the APR will be an important factor in deciding which credit card is right for you.

Add-On Card

An add-on card is a second card issued by the same company as your primary credit card. They’re often used to help build and improve your credit history because they can be used in any way you like and show that you can manage more than one account at a time.

The main thing to remember about add-on cards is that they’re usually issued with lower limits than the main card (as well as lower interest rates), so it’s important to keep track of how much money you have on them at all times.

Credit cards are not always bad. Using them correctly can be a great tool for building credit and earning points towards rewards. It’s important to know how much you can afford to pay off each month—and if you get too deep in debt, your credit score could suffer.