With this credit card, you'll get low or zero APR!

The old bait and switch trick is one of the most tried and true advertising schemes to entice people into signing up for a product. The key to statements like these are those omnipresent asterisks and the "introductory" stipulation. Perhaps you'll start out with a low rate, but once that introductory period is over, you get nailed with absurdly high rates.

When shopping for credit cards, look for cards that offer a low "fixed" rate. Fixed rates generally don't change over a certain period of time unless you are late on a payment or you re-negotiate your terms.

Credit card rewards means excellent freebies

The problem with points is that they often have little to no value when actually translated to US dollars. For example, you might need to accrue hundreds of thousands of points for a free flight or gift card. Meanwhile, you'll only be earning one point per dollar, which means in order to afford a $5 gift certificate, you'll have to spend upwards of ten thousand in the first place. Before signing up for a seemingly great rewards card, be sure to research how points are accrued, if enrollment in the program costs anything, if points expire, and if the interest rates and annual fees are reasonable.

As long as you pay your credit card bill on time, your rates won't go up.

"Universal default" is a little known term that can have a big effect on your finances. Say, for example you are paying your credit card in full and on time, but you are late on a utility bill, or are disputing a medical bill and the creditor submits the bill to a collection agency. Credit card companies will catch wind of this and use this as an excuse to hike your rates exorbitantly.

Paying the minimum balance each month is a good practice

Just because paying off the minimum amount due won't get you in trouble, it doesn't mean its a smart idea. The longer you take to pay off your debt, the more it will cost you in the long run. While you may only pay $50 on your bill each month, you'll probably end up paying twice the amount you intended to spend if you let your balance collect interest.

Cash Advance exists for your convenience

Cash advance and super checks are the fastest way to rack up a huge balance on your credit card bills. Although these transactions resemble those of the relatively innocuous debit card, pulling money from an ATM with a credit card can cost you big time. Immediately, you'll be charged special processing fees from your bank and whichever bank owns the ATM, and then charged a special interest rate on the amount you withdrew, often with no grace period. To compound the problem, your lower interest rated debts usually take precedence over your high interest rated debts. So, while you work to pay off your normal debts, your cash advance debt is silently snowballing in the background.

Rates and terms are set in stone.

Card issuers can change their policy at any time. With rewards programs, a credit card company can change fees or add restrictions with as little as a 15 days' notice. However, the flexibility of your terms can also work in your favor.

Credit card companies have a vested interest in retaining their customers. If you have proven that you are a good customer by paying your bills before the due date, paying your balance off in full each month, and staying with the company for over 2 years, you have a good chance of negotiating a better interest rate.

Using credit cards is the only way to build credit

There are other forms of credit than credit cards. You can build your credit with a lease, an auto loan, a student loan or a home mortgage, too. And if you don't have enough history to get started, you can always get someone to co-sign.

In fact, it is better to have more than one type of credit than "revolving" credit, such as your credit card. When credit rating bureaus look at your credit history, they will take note of what kinds of credit or accounts you have. A creditor with an installment plan, a mortgage and a lease will look much better than someone who simply has several different credit cards.

Signing up for merchant credit cards makes sense because of the discounts

Whenever you are at the register of a major department store or retailer, you'll often be asked if you want to "save 10% by signing up for a credit card today." While this may seem like an enticing deal, the truth is that most consumers that sign up for merchant credit cards end up spending much more than they normally would. That 10% discount doesn't amount to much unless you spend more. Most consumers convince themselves that its okay to buy twice as much just because they are getting a 10% discount.