When choosing a credit card, there are many credit card features and cards to consider. The benefits offered, the interest rates as well as fees and charges vary among companies. Some cards may look great at first glance, then you may change your mind once you read the company’s terms and conditions. There are a few things that you should keep in mind to choose the best credit card for you.
Many credit companies charge some form of membership fee. The different terms used for these fees are “monthly maintenance”, “annual”, “participation”, “activation” and “acceptance” fee. These fees may be as low as $5 or as high as $150. Be sure to read carefully before you commit to the terms offered.
Some companies charge a transaction fee for cash advances, late payments and exceeding your credit limit.
The grace period is how long you have to pay before the company starts tacking on interest. The APR is the cost of credit at a yearly rate. Be sure to check the agreement to find out if the APR is fixed or variable. Balance computation is how the company figures finance charges for balances paid over time.
Some companies allow you to transfer a balance from other cards, usually without
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2 Jul, 2008