How to compare credit cards

It’s important to do your homework and comparison shop for credit cards. Good shopping will save you money on fees and interest charges. There is a wide variety of terms and charges, every card is different. If you have good credit look for rewards cards. If you have poor credit look for your best deal in secured cards.

Watch for annual fees and other fees and charges
Watch for the amount of fees and how many different fees they have

Annual Percentage Rate (APR)
This is how they determine what you will pay for your credit.

Fixed vs. variable APR
The rate rarely changes unless you miss payments then it increases. It might increase but you must be notified by the card issuer

This rate may go up and down (though rarely down). All rates should be stated in term and disclosures.

Introductory Rate
These are great things for saving money, but they don’t last long. Make sure you know what your rate will go up to after the introductory rate expires.

Free or Grace Period
Some cards have these, watch for them. A grace period is the time between when you purchase something and when the card issuer starts charging interest on it, usually 20-25 days. If you pay your card off monthly you can save hundreds of dollars in finance charges.

Reward program features
Many cards will pay you back a percentage of the amount you use. These can come as cash back, airline miles, airline points, auto buying points and more. These generally have higher interest rates, so carrying a balance is a bad idea. However if you are going to spend the money anyway this can be a good way to get bonuses.