Shopping for the credit card Company to meet your needs is like shopping for a car. Credit cards come in all colors, models and features. To take a test drive and find the model you want to have to go to a lot of dealers. Price is also a factor as the fees and terms of use differ widely from company to company.
Don’t be discouraged… with a little self education you can get the credit card that best meets your needs. Don’t get pressured into the “apply now before a certain date”, as there are more offers than you can imagine and it is important to know what you are getting yourself into.
Why do you want a credit card?
Remember, the credit card company is in it for the money – and they make plenty of it. There is a variety of fees associated with borrowing on your credit card.
Terms:
Every credit card company had a list of terms – read them! These are the credit terms that affect the overall cost of using credit.
Annual Percentage rate (APR)
This is the yearly rate you are charged on your unpaid balance. Often the APR is really low for the first 6 months to get you to sign up, and then it can increase often up to 30%. This can drastically affect the amount to pay if you carry a balance.
Other fees
Most credit card companies charge an annual fee ranging from $25.00 - $100.00 per year. Many companies charge a fee if you take out cash advance or transfer balances from other cards. Late payment fees are usually also added to overdue accounts.
[ Credit
Card - Locator! ]
When choosing a credit card company it is important to know how you are going to use it. If you pay your balance off monthly, get a low annual fee. If you carry a balance, get a low APR. If you are a student or just reestablishing your credit, there are special cards, which may be more suited to your needs.
Whatever you decide, keep good records and all your receipts. Protect your credit card numbers, draw a line through any blank spaces and tear up the carbons. Keep a complete list of your credit card numbers and only carry the cards you will be using.
