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
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
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.
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
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
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.