Choosing a Credit Card: How To Choose The Best Offer

Credit cards offer plenty of benefits and convenience. And
these days, there are cards for everyone. With so much
variety, choosing a credit card can quickly turn into a
daunting task. But it doesn't have to be. By reviewing your
needs, you can easily match a credit card to your
lifestyle. Here are three things to consider as you choose
a credit card.

Check the Interest Rate

Every credit card has an annual percentage rate, or APR,
attached to it. If you pay off the balance each month, this
will not affect you. However, most of us do occasionally
carry a balance, so finding a good APR is important.

Many cards come with an initial low or 0% interest rate.
After a period of time, varying from a few months to a
year, the regular interest rate will be used. Some cards
offer low interest rates, while others charge a higher one.

You will want to check if the card has a fixed or variable
interest rate. A fixed rate is one that will not change
unless the issuer notifies you. A variable interest rate is
usually attached to another rate, such as the prime rate.
As the prime rate changes, the interest rate on your credit
card will also fluctuate. There are often limits included,
which define how high or low your rate can go. Check the
fine print of the credit card application to get a better
understanding of the interest rate and how it works.

Look at the Finance Charges

Most credit cards have a number of finance charges
included. Some charge an annual fee for carrying the card.
This can range from $25 to $75, and sometimes more. Other
costs may be incurred through balance transfers, cash
advances, late payments, or by exceeding the credit limit.
These may or may not affect you, depending on how you use
the card.

Besides the fees, you will want to look at the grace
period. This is a free period that allows you to avoid
finance charges by paying off the balance before the due
date. Some cards have a long grace period, while others do
not include one. By reading through the terms and
conditions, you will better understand the charges attached
to the card.

Compare Additional Benefits

Participating in a reward program can help you accumulate
additional benefits quickly. Some cards give you cash back
when you make purchases. This usually ranges from 1% to 6%
of the amount spent. If you spend a lot of time driving, a
card with gas rewards will be very advantageous; similarly,
if you travel frequently, you can earn valuable airline
miles through a credit card that offers miles or points for
travel with your purchases.

Some cards can be used to consolidate debt. Look for one
with a low charge for balance transfers and a 0% APR
introductory rate. Then transfer your balances onto the
card. If you can, try to pay off the entire debt before the
0% APR offer expires.

By evaluating your needs, you can decide what to look for
in a credit card. Search for one that fits those needs and
then apply online. The card will soon arrive in your
mailbox. Use it wisely, and you'll enjoy the convenience
and benefits of having a credit card.

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To Choose a Credit Card click the following link:
http://www.credit-card-surplus.com . Ed Vegliante runs
http://www.credit-card-surplus.com , a directory helping
consumers to compare and apply for credit cards.