Only five?

Okay, there are probably more than just five things to know about your credit cards. Yet, these items are the most important components that you should know about any credit cards in your wallet or purse. Whether you're considering applying for a new credit card to start from scratch or considering transferring a balance, learn the following about each credit card that you own:

• What is your payment due date?
• What is your credit limit?
• What is your payment address or website to make electronic payments?
• What are the APR's that apply to different activities?
• What is your credit card number and what number do you call if the card is lost or stolen?

Answering these questions may improve your overall credit card experience and save you money. Neglecting these items may create both short- and long-term problems.

1. Payment due dates

Managing credit cards and making timely payments can help to maintain or even improve your credit score. Yet, there is another critical reason you know your payment date: Your interest rate may skyrocket in any month you make a late payment. Many credit cards will increase your APR (annual percentage rate) from a low rate (which is why you procured the card) to rates in excess of 20%, sometimes for just one late payment.

2. Don't exceed credit limits

Always know your credit limits because a mistake could be costly. In the last millennium, exceeding your credit limit often motivated your card company to simply increase your limit. No longer. Most credit cards now increase their interest rates – by large amounts – if you exceed your credit limit. This can be a very expensive activity.

3. Where and how can you make your payments?

Timely payments may not only improve your credit score; they can also sometimes save you unpleasant and possibly unexpected finance charges. Whether you mail your monthly payment or like to make it online, record the correct address or URL. Late payments often generate large fees (sometimes up to $50) or an interest rate acceleration that might be 5% to 10% higher than your normal low APR.

4. Different APRs may apply to various credit card activities

Many people just evaluate the stated primary APR offered by a credit card. Unfortunately, many credit cards have a series of interest rates that apply to different card uses or other activities. For example, when you purchase something at your favorite electronics or department store, you'll likely pay the primary APR. But, if you stop on the way home and get a cash advance for your local ATM, your rate will be higher – sometimes much higher.

A simple miscalculation that drives your outstanding balance over your card limit may also trigger a new, higher interest rate. A returned payment check or missed payment date might also bring the same result and/or sometimes a large fee. Know the range of APR's that your credit card company will charge for activities other than purchases.

5. Lost or stolen card phone numbers

Most of us are familiar – hopefully, not too familiar – with identity theft or misplaced credit cards. Either of these situations can cause serious financial and psychological harm. Learning that your credit card has $5,000 in new charges can ruin your day. Therefore, record the proper phone number to report lost or stolen cards so you can notify your card company the moment you learn of a loss. Your liability for new charges will be eliminated and you can move on with your life without fear of financial ruin.

Other considerations

Other factors might prove important as well. For example, in recent years, some credit card companies have charged an increased APR or a special fee if you use your card in some foreign countries. The necessity to make currency exchanges and the cost of foreign currency generated this surcharge. In this situation, taking that long-awaited European vacation will become more expensive.

The key is to learn all you can about the credit cards you have or any new accounts you are considering. Credit cards have a long list of do's and don'ts, permissions and restrictions, APR's and fees. The many combinations of different rates and fees can be confusing. Yet, all provisions in credit cards you own, or are considering, are important to know.

You should be familiar with all terms and conditions that apply to your credit cards. Considering a balance transfer from another card? Offered a low or zero interest rate? Check to see if there is a 3% "fee" on the entire amount you transfer. Read your card agreement thoroughly – boring though it may appear. Doing so can greatly benefit your finances.