Select a Credit Card Based on the Terms and Conditions

How often do you receive credit card offers in your mailbox that seem to be yelling at you about expiring offers and your last chance to get in on some super deal they’re offering? Many credit card offers look the same at the first glance, but once you take the time to read over the terms and conditions of each card, you can determine which of the offers are actually a “good offer”. Don’t make a rushed decision and fill out an application for a credit card that simply has good marketing materials, take time to read each of the details and compare it with some of the other cards on the market to be sure you’re getting the best deal available to you.

Annual Percentage Rate

Commonly known as the “APR”, the annual percentage interest rate is one of the easiest details of a credit card to learn. Cards must indicate what their APR is, whether it is 3.2% interest on balances or 18.5%. Just as important as the published APR is whether or not the APR is fixed or variable. A variable rate could mean your annual percentage rate increases every month, and you may end up paying more interest than you thought within a few months. You can find out whether the published APR is fixed or variable by turning your credit card application over and reading the fine print on the back.

Credit Card Fees

This is where the marketing materials for credit card offers can get you! If you see huge text screaming “no fees for 1 year!” or something similar, what you should be asking yourself, however, is what those fees will be once the introductory period has ended. There are credit cards that charge fees when you use it to make a purchase or cash advance, and even cards that charge an annual fee whether you use it or not. Comparing the fees from one card to the next is an important step before making the decision to select a particular card.

Credit Card Payments

The terms and conditions of a credit card also spell out the details regarding the monthly payment schedule. For example, some cards require a payment on a 30 day billing cycle, while others are actually a 45 day billing cycle. Some cards carry hefty late payment fees, and while you should certainly do everything in your power to avoid sending a credit card payment in after the due date, check around for the lower late fees just in case you find yourself having financial difficulties.

Rewards Cards

There are a huge variety of rewards based credit cards available to consumers. These cards are designed to attract customers. Competition among credit card companies is fierce, and offering different awards programs is one way the companies attempt to get customers interested in their offer over another companies offer. There are many varieties of rewards programs, you can earn miles and points, cash back on purchases, and store specific discounts or offers . Most rewards cards have annual fees associated with them, often up to $100 per year, so it is in your best interest to determine whether or not the rewards you can potentially earn will be worth the higher annual fee. It can be difficult to choose a credit card with all the possibilities available to the majority of consumers. Signing the first offer you receive is not the best way to select your credit card. Obtain a few card offer details and compare each of their terms and conditions, fees, payment schedules, rewards program and interest rates in order to select the best card for your spending needs.