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Comparing Credit Cards: What to Look for

So, you’re looking for a credit card? Do you know what to look for? Do you know that a good credit card is more than just a low interest rate?

If not, then you’re like most Americans that fail to look at all of the features of a credit card before choosing one. For example, if you pay your bills in full each month, a credit card with a low interest rate probably isn’t that important to you; perhaps instead you may want to look at rewards credit cards or those with no annual fee. In other words, a good credit card means different things to different people, depending on their financial needs and wants.

With that said, here is a list of items that you may want to consider when shopping for your next credit card:

• Length of APR – Is the APR simply an introductory rate and, if so, what is the interest rate once the introductory period has ended? Is the rate variable or fixed? If it is variable, how is the interest rate determined? Is it tied to the current prime rate or Treasury Index?
• APR and Purchases – Is the APR different for purchases and cash advances? Does the APR apply to balance transfers?
• Late Payment Penalties – Can the creditor raise your interest rate after just one late payment?
• Annual Fee – Does the credit card have an annual fee? If so, are the credit card’s perks and rewards worth the annual fee? Is the annual fee negotiable with the credit card company?
• Payment Terms – How is the minimum payment calculated? How many days from your statement date do you have to pay on the credit card before it is deemed late?
• Website Features – Does the card have an easy-to-navigate website? Can you make payments, view your balances and check recent purchases online?
• Finance Charges – How are the finance charges calculated? How does the credit card company determine your average daily balance? Is there a minimum finance charge imposed by the company?
• Credit Limit – What is the credit limit?
• Rewards, Incentives, Rebates – Does the card offer any rewards, incentives or rebates? Are these rewards worth paying more in finance charges? How are the rewards and incentives calculated and earned? Are there rewards bonuses for signing up?

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• February 5, 2010 -- Understanding the Difference between a Credit Card and a Charge Card (0)
• January 20, 2010 -- The Top Four Reasons why Maintaining a Strong Credit Score is more Important than Ever (0)
• January 6, 2010 -- 0% Credit Cards: What’s the Catch? (0)
• December 15, 2009 -- How to Find the Best Travel Rewards Credit Card (0)
• November 9, 2009 -- Even the Most Dutiful Credit Card Customers may soon be Hit with Unexpected Fees (0)
• November 5, 2009 -- Why it Pays to Consider all of your Options when Shopping for a New Credit Card (0)
• September 14, 2009 -- Are you Taking Full Advantage of your Rewards Credit Card? (0)
• August 26, 2009 -- The Top Five Tips to Remember about your Student Credit Card (0)
• August 24, 2009 -- The Top Five Tips to Remember about your Rewards Credit Card (0)
• August 3, 2009 -- Your First Credit Card: Terms you Need to Know (0)
• July 20, 2009 -- What you don’t Know Might Hurt you: Important Questions to Ask before Signing up for a Credit Card (0)
• June 19, 2009 -- The Many Ways in Which Consumers will be Protected Under the New Credit Card Reform Bill (0)
• May 22, 2009 -- How to Procure a Lower Interest Rate (0)

Posted on Wednesday, Feb 03, 2010 under "Choosing Credit Card"
Post tags: annual fee, credit card features, finance charges, good credit card, late payment penalties, length of APR, low interest rate, payment terms, rewards credit card

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