Advice from Rosetta Jones, director, Visa USA

A credit-card agreement is similar to a contract, so you need to understand all the nuances. Key terms are given in boldface. The most important thing to understand is the cost of ownership: Zero in on your annual percentage rate; any annual, cash-advance, or ATM fees; and what the late charges are. If you’ve gotten a promotional rate, make sure you’re clear on when it ends and what rate you’ll pay afterward. Check for details on fraud protection, resolution options for disputes with merchants, and perks and rewards. Don’t be shy about calling the bank if you’re unsure about any of the terminology. (Or check your card’s website.) For example, people confuse the terms “authorized user” and “cosigner”: If you make your daughter an authorized user, she can use the card but has no legal responsibility, whereas a cosigner does.