Choosing a Credit Card
Once you've decided you want a credit card; it's time to look at the differences and match your needs with the rewards and rates available.
Credit
If you cannot pay off your credit card in full each month, you need a card with a lower interest rate. The lure of interest-free days means nothing to you. If you haven't paid off your card on the due date, you lose those interest-free days anyway. What that means is you end up paying a higher rate for no extra benefit.
How do I compare credit cards?
- What's the rate of interest?
- How long is the grace period?
- Variable or Fixed Rate?
- How much are the minimum payments?
- Is finance charged from the date of purchase or from when the statement is issued?
- Is there an annual fee?
Avoiding fees
If you are really looking to avoid fees, read the fine print. You need to know their rules the grace periods and more. Many credit cards have some very clever ways of adding on fees. You may also want to check out Credit Union Credit Cards, many times there are little to no fees. But to save you some money and possibly your credit rating READ THE FINE PRINT.
Things to look for:
- Over limit fee
- Late payments
- Return Payment
- Balance Transfer fee
- Cash Advance fee
* APR=Annual Percentage Rate. Subject to qualified credit. Some restrictions apply.
