Your No-Nonsense Guide on How to Compare Credit Cards

With the media full of stories about credit card companies' new concealed fees and interest-rate hikes since the credit crunch started in 2007, the consumer needs now more than ever before to do due diligence before signing up for a credit card. Selecting a good card is about more than simply finding the card with the lowest purchase APR or annual fee; depending on your needs, the card with the lowest purchase APR or yearly fee might not be the best choice at all. Here are the four most important factors that must be considered when doing an in-depth credit card comparison search:

One: fees. There is more to card fees than just the yearly fee. Some credit card companies charge a 3% fee for each balance transfer. Many credit cards also impose foreign transaction charges, cash advance fees, bank wire payment charges, and convenience-check charges. Failing to grasp these fees often leads to upsetting surprises on your bills.

Two: the introductory rate. Credit card companies grasp the nature of their market. That's why they keep changing credit card offers to beat their competitors. Many of us get credit cards to take advantage of special starter rates. It's essential to be cognizant of how long these introductory rates last and what the real rates will be following the introductory "honeymoon" period.

Three: the annual percentage rate. APR is one the commonest factors utilized to choose among the masses of cards available. However, it is important to remember that APR is frequently not a single number. Consumers should focus on not only the purchase APR but also to the cash-advance and balance-transfer APR. One can suppose that a card publicized as having a zero percent APR for purchases offers the same rate for cash advances and balance transfers, but that is oftentimes not the case.

Four: the grace period. Lots of people assume that a thirty day grace period is automatically included with all cards. However, there are some credit cards that come with sixty-day grace periods and other cards that come with grace periods of only twenty days. Being unaware of a card's grace period might result in overdue payments and a weakened credit history.

Enrolling for a credit card gets you into a relationship with your credit card issuer. When you really compare credit cards and understand the terms of that relationship before applying, you will avoid significant surprises on your bills and remove unnecessary stresses from your financial life.