As competition among credit card issuers heats up, many people are being bombarded with a wide range of attractive offers from banks and other institutions.

While annual fees and percentage rates on outstanding balances are important, there are many other issues that you need to know about before you apply for a credit card.

Here are some key points that rarely appear in credit card issuers’ promotional materials but usually turn up in the fine print on credit card contracts:

Most people know that if their credit cards are used fraudulently, they are liable only for the first $50 in charges.

But under the Federal Truth-in-Lending Act, if you do not report the disputed charges in writing within 60 days of the postmarked date on the bill, you may have to pay the fraudulent charges to avoid being reported to a credit bureau.

Theft can occur without your wallet or your credit card ever being stolen. Increasingly, card numbers are being copied and sold to criminals or reproduced on counterfeit cards. Therefore, fraudulent charges can appear while you still have your card in your possession.

Check all your credit card statements carefully. As soon as you realize that a statement lists questionable charges, call the issuer’s 800-telephone number and report it.

Though most problem charges can be handled over the telephone, protect yourself by sending a letter to the address that appears on the monthly statement and the credit card agreement.

Use certified mail/return receipt requested. Then you will have evidence that the issuer received your letter. This precaution protects you in case the issuer fails to recall your original telephone call...or denies your claim because you never informed them in writing.

A credit card with a lower interest rate can save you a great deal of money. Even if your card issuer offers a 25-day grace period - during which no interest is charged on new purchases - you will not be eligible for this benefit if you carry over a balance of even $1 from the previous month. Your new purchases will immediately incur interest charges.

Carry two credit cards. Use one for purchases that you intend to pay in full each month...use the other - which should have a lower interest rate - for purchases you will repay over time.

If you carry large balances on several credit cards, consolidate debts on the lowest-interest card - provided you have the discipline to refrain from using the other cards and adding to a mountain of debt.

A typical credit card bill of $2,500 can take longer to pay off than a 30-year mortgage. This is because most card issuers require a minimum payment of only 2% to 2.5% of the new balance.

The combination of interest and even a small additional purchase can stretch the debt out for decades if only the minimum is paid each month. Millions of Americans are deeply in debt because they habitually pay only the minimum amount required by the card issuer.

There are several methods to calculate interest. Almost 90% of card issuers use the average daily balance method, which charges interest on your average balance for the month.

The Discover Card, the Household Bank Card and some cards issued by small banks use the two-cycle method. In some cases, this is calculated by adding the average daily balances for the current and previous months. This method can be costly.

Find out which method is used before you apply for a credit card. For those you already own, check the agreement or statement. If it is a two-cycle method, pay off your balance in full each month. Also, carry a low-interest card that uses the average daily balance method for charges that you are going to pay over time.

Many credit card issuers send convenience checks to cardholders. These look like personal checks and enable you to write checks against the line of credit on your card. However, there are two traps...

In a recent case, a man ordered a computer from an out-of-state retailer and paid with a convenience check. He never received the computer and the credit card company would not help him get a refund.

Use convenience checks only for emergency expenses - paying off balances on cards with higher interest rates...or making a tax payment, if you must borrow to do so.

If you do not need the convenience checks, tear them up. If you simply throw them away, someone may find them and forge your name.

Most credit cards offer 30-day grace periods for late payments - before the debt is reported on your credit report. Most issuers do not mention this because they want you to pay quickly - and you should. But many people think that they are reported one day after missing the due date.

Although a later payment may not be reported on your credit report, it will be on file with the card issuer. This could count against you if you later request a higher credit limit.

Also, some issuers have had levy fees of $10 to $25 for even one day of lateness, and this constitutes a major interest rate.

If it is the first time you were late and you are charged a late fee, call the issuer. You may be able to have it waived - if you prove there were extenuating circumstances, such as being away on a trip...health reasons...or the mail was lost.

If you have lost your job or have another financial crisis and cannot pay, call the issuer and work out an agreement for an extended payment plan. It is always best to discuss late payments with your credit card issuer before you miss the deadline.

A merchant cannot impose a minimum amount of $10 or $25 for those who use American Express, MasterCard or Visa.

Tell the store clerk that a minimum is not allowed under the merchant’s agreement with the issuer. Demand to see the manager if necessary.

If you feel strongly, find something more to buy so that you can charge it.

Write to MasterCard (2000 Purchase Street, Purchase, NY 10577) and enclose a copy of the charge slip, which will help the credit card company track down the merchant’s bank.

For Visa, you must report the merchant to the bank that issued your card.

American Express prefers customers to call the 800 number on the back of its cards and discuss it with a representative.

You will not receive credit on your card for the additional items you charged - nor will you receive store credit - unless you return the item.

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