• Choosing to use a credit card usually comes with some sort of risk.bank statment and cut credit card image by Warren Millar from Fotolia.com
  
  Credit cards offer consumers an easy and convenient way to pay for their purchases. However, it's important to be aware of the risks and concerns that arise when using credit cards. According to an article in "Time" by Barbara Kiviat, far too many people are unaware of the problems that credit card use may entail.
  
  

Teaser Rates

• Beware of low initial interest rates that some companies offer to get you to sign up for a card. These rates are usually artificially low, and only last for a short time before skyrocketing.
  
  

Late Fees

• Pay your credit card on time every month, or you will be subject to steep late fees and penalty interest rates. The same goes for over-limit fees; if you accidentally charge more than your available balance, your card company will usually make you pay dearly for it.
  
  

Easy Money

• Drazen Prelec and Duncan Simester of the Massachusetts Institute of Technology have found that people who pay with credit cards are more likely to spend high and fast. Because paying with plastic doesn't feel the same as spending cold hard cash, consumers are willing to spend about twice as much on products when paying with credit cards.
  
  

Unauthorized Charges

• If you lose your credit card, have it stolen, or buy online from unsecured sites, you could be setting yourself up for unauthorized charges. While the Fair Credit Reporting Act limits card owner responsibility to $50 for unauthorized charges, having someone else use your card is a scary reminder that credit card transactions are not always as secure as they seem.