Lack of credit card knowledge, could cost you

How much do you know about your credit cards? Apparently not very much, according to a new survey.

A lack of credit card knowledge could affect you in more ways than you think.

Your credit is important. It affects your ability to buy just about anything, from a new pair of shoes to a new home.

But, do you really understand the fine print in your credit card agreements?

"Every credit card offer has a Schumer Box, which lists key information about that offer, such as the APR, or the annual percentage rate, as well as what happens if say you're late in making a payment on that card," explains Personal Finance Expert Lynnette Khalfani.

However, according to a new survey, 44-percent of respondents' say they don't know the APR charged on their cards, while 20-percent don't know what their credit limit is.

The findings suggest that some problems could begin with credit offers received in the mail.

"Credit card offers with really tiny fine print or hard-to-find disclosures can be confusing for consumers," says Khalfani. "The Schumer Box is a valuable consumer resource, but I still think that a lot more can be done within the industry to make credit card disclosures a lot easier for consumers to understand."

For example, your card may have a universal default clause, which means if you're late paying on one card, your rate on another card could go up, sometimes significantly.

"Don't accept a credit card based solely on the interest rate that you're being offered. You really need to shop around and compare overall terms," says Khalfani.

If you get a credit card offer in the mail, you don't want, be sure to shred it as well.