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Credit cards can be a double-edged sword. They offer convenience, consumer protections, and built-in benefits, and some of the best credit cards pay cash back and other fun rewards.

But just like with any financial product, you need to be a well-informed consumer before you open a credit card account. Credit card companies make money by getting people to spend money with their cards. And these companies use psychologically tempting offers to motivate people to spend. Some people end up spending too much and get into credit card debt.

Let’s look at a few of the powerful and sometimes-sneaky tricks that credit card companies use — and how you can get the best value out of credit cards while avoiding debt.

1. 0% introductory APR

Many credit cards offer a special 0% introductory APR period when you open a new account. For example, some cards might offer 12 months of 0% APR on new purchases.

Why this is a trick: If you’re not careful and run up a big balance, you’ll owe interest on that entire balance as soon as the introductory 0% APR period ends. This can cost you much more money in interest than you expected.

How to avoid this trick: Pay off your credit card balance in full each month. Just ignore the 0% APR and pay your credit card bill on time, like normal. If you never run up a credit card balance, it doesn’t matter what the APR is — because you’re not paying interest!

One situation when 0% APR on a credit card can be a good thing? When you use a 0% APR balance transfer credit card. These credit cards can be a smart way to pay off credit card debt if you transfer higher-APR balances to your new 0% APR credit card.

Ready to get out of credit card debt? Click here to see our picks for the best 0% balance transfer credit cards — and start paying off credit card debt faster. But make sure you have a plan to pay off your entire debt before the end of the 0% APR period. And be aware of balance transfer fees.

2. Big-spending welcome offers

Many of the best credit cards have special welcome offers that give you reward points or cash back if you spend a certain amount of money on the new card.

Why this is a trick: Some people might spend too much money chasing after that welcome bonus. For example, let’s say you have a new credit card welcome offer that requires you to spend $6,000 in three months. If you normally spend $500 per month on your credit card, having to hit that $6,000 target might cause you to make some big, extravagant purchases like a new TV, expensive clothes, or a big trip that you can’t actually afford.

How to avoid this trick: You don’t have to overspend to earn a welcome offer. Instead, just spend like normal, but use your new credit card to pay for monthly bills that you already pay for with your checking account or debit card.

For example, you can pay for utilities, cellphone service, home internet, auto insurance, groceries, and many other monthly expenses with your new rewards credit card. No outlandish purchases or extra spending required!

3. Credit card rewards

Many credit cards offer cash back rewards, or travel reward points that can be redeemed for cheap flights, free hotel stays, and other valuable experiences.

Why this is a trick: People might get so dazzled by earning 1% cash back or 3% travel rewards on a credit card that they go into credit card debt that costs them a lot more than they earn.

How to avoid this trick: If you can avoid it, never, ever go into credit card debt. Pay off your credit card balance in full, on time, every month, and your credit card rewards will be worth it. If you pay interest on your credit card, the credit card company makes money off of you. But if you always pay off your credit card balance, credit card rewards let you make money off of your credit card.

Bottom line

The key to having a good experience with credit cards is to always pay off your credit card balance on time. Never go into credit card debt. Try to avoid owing interest on your credit card.

Being a well-informed credit card customer can help you maximize the rewards of credit cards while avoiding the expensive downsides of high-interest debt.

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