Finding the right credit card for you

Never accept the first credit card offer you see, looking around and comparing credit cards can save you a lot of money. Before signing up for a credit card you should understand the terms of the credit card agreement that you will be bound to.

If you already have a credit card or want another one, it would be wise to look around as you may find a better deal. Credit card companies can also change there terms with as little as 15 days' notice, if you don't like the changes find a better offer.

There are 4 important elements in a credit card agreement:

Interest
This is also known as the finance charges and is the main comparison between credit cards. Interest is disclosed in a variety of different ways, to find the best deal you need to look at the Annual Percentage Rate (APR) and is expressed as a percentage. This is the transaction fees, interest and other charges you will pay per year.

Transaction Fees
It would be wise to look at the small print to see whether the credit card company charge fees for cash advances and assess penalties if you pay your bill late or go over you credit limit.

Grace Period
This is only important to those who don't carry a balance. This is the interest free period between purchase and bill due date. If you pay your balance in full each month, be sure to make sure there's a grace period or you'll be charged interest on day of the purchase.

Annual Fees
Flat fees are extra fees on top of interest and other stuff for using a company's credit card. Not all companies charge this fee and it is only advantageous to those with a balance. It would be better to go for a card with a low interest rate and annual fees then a credit card with high interest rates and no annual fees.

Carl S. Richardson

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