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 Compare
Credit Cards
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Compare,
compare, compare
Two cards with the same attractive interest
rate can have vastly different fees and
other costs. One card may offer rewards or
perks that are appealing to you, while the
other offers only credit. Think about other
services you may need, such as cash advances
or balance transfers. Some cards offer more
favorable terms for these kinds of
transactions than others. Cards marketed to
people with less than perfect credit can
also have hefty fees, which add up quickly.
Make sure you choose a card that is worth
what it costs you. You should also consider
whether the credit limit is high enough, how
widely the card is accepted, and the plan's
other services and features.:
- Is there
an introductory rate? How long does it
last? Does it apply only to purchases,
balance transfers, or both?
- When the
introductory rate ends, what will my
long-term rate be?
- Is there
an application fee or other processing
fees when I sign up?
- Is there
an annual fee? Is it possible to have it
waived the first year?
- What kinds
of penalty fees apply? Are there late
fees, over-the-limit fees, or balance
transfer fees?
- When and
how will my variable Interest Rate be
changed?
- What is
the grace period before interest charges
apply?
- How will
the company inform me of any changes in
the contract, such as changes to the
Interest Rate and other cardmember
benefits?
Be honest
with yourself. What are your actual
financial habits and credit needs? The way
you plan to pay your bills is important
when it comes to choosing a card. Carrying
a balance every month, instead of paying
your balance in full, can drastically
change what you are shopping for.
Likewise, the credit limit, rewards
programs, and other cardmember benefits
you apply for require thoughtful
consideration. Don't pay extra for
anything you can't use, and don't
over-extend yourself financially - it can
lead to major problems later on.
When
shopping for a credit card, you may be
overwhelmed by the number and variety of
options available. There are bank cards,
store cards, affinity cards and more all
offering various interest rates,
rewards, and special programs. There are
different cards for every credit level
and financial situation. But which is
the right card for you?
Consider your spending habits
Will you be running up large bills and
carrying a balance? A low-interest card is
a must-have. Will you be using your card
often but paying off your bill in full
each month? A rewards card can be a steal
when you're not paying interest! Do you
have difficulty handling your credit
responsibly? Aim for a card with a lower
credit limit, such as a student card or
secured card, which can help you learn
good habits without the danger of
incurring excessive debts.
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