Here’s what you should keep in mind when using your cash back credit card:

• Pay attention to the terms of your cash back program – Many cash back credit cards offer introductory rewards, such as one percent cash back on all purchases during the first six months, for example. But what you may not understand is that, many times, the credit card company will not begin paying out cash back rewards until you have spent a certain amount on your credit card. Pay attention to any tiered systems the credit card company may have regarding their cash back program.
• Pay close attention to the spending terms on your cash back credit card. In short, make sure you fully understand where you can earn your cash back rewards. Many credit card companies, for example, will offer you cash back if you use your credit card for certain purchases, such as gasoline or groceries. In addition, pay close attention to any information you receive from your credit card company each month, as this could detail the monthly cash back rewards retailers. In other words, if you want to reap the most rewards from your cash back rewards credit card, make sure you know where to spend your money.
• Pay attention to the interest rate on the card. Although it is always best to pay off your cash back credit card each month, there may be times when you are unable to do so, so make sure your card’s interest rate is competitive.
• Don’t dismiss a cash back rewards credit card if it comes with an annual fee. Although there are plenty of cash back credit cards that have no annual fee, some companies charge an annual fee. This fee, however, may be quite small compared to the rewards it offers, so always weigh your options before dismissing a card based solely on the annual fee.

• Compare a number of student credit cards before deciding on which one to apply. It is important to remember that, like any other type of credit card, the interest rates on student credit cards can vary greatly.
• In general, you should not need to pay an annual fee for a student credit card.
• Don’t apply for a student credit card until you have carefully read the terms and conditions associated with the card. If you don’t understand something, call the company and ask questions, as the worst decision you can make regarding a student credit card is applying for a card you don’t thoroughly understand.
• Consider opening a checking account before applying for a student credit card. This will allow you to begin building a credit history and will become an easy way to pay your monthly bill. If you have a bank account with a credit union, you will likely be able to apply for a credit card through your credit union, as well.
• Start your search for student credit cards online. There are so many great websites that feature and compare the latest student credit cards, which will allow you to compare the cards’ features, side by side.
• If you don’t have a steady job throughout college, you will likely need to get a parent to co-sign for the credit card. The federal CARD Act has changed the rules when it comes to student credit cards, so you may need the help of your parents to get your first student credit card.
• Make a commitment to always pay off your credit card each month. Now is not the time to carry a credit card balance and create bad credit card habits that will haunt you well beyond your college years. Charge only what you can afford to pay off each month and begin establishing a strong credit score that will help you do everything from purchase your first car to rent your first apartment.

The fact is that the interest rate of a credit card is just one factor to consider when researching credit cards. Here is what you may want to consider when choosing a new credit card:

1. Interest Rate – OK, of course you will check the interest rate. But what may be just as important as the interest rate is the length and type of interest rate. First, if the card offers a low, promotional rate, make sure to pay close attention to the length of the promotional rate and, perhaps more importantly, the default interest rate once the promotional rate has ended. In addition, make sure the interest rate on the card is fixed – not variable – to save yourself from any surprises down the road.
2. Billing Cycle – A generous billing cycle should be an important consideration when choosing a new credit card. This is because you want to be assured that you will have sufficient time to make payments each month without incurring finance charges on your previous month’s purchases. Although the CARD Act has set limitations regarding billing cycles, it is still quite common to see small variations regarding billing cycles and grace periods, so don’t overlook this feature.
3. Rewards – If you want a credit card with rewards, you must do your homework and read the fine print! Rewards credit cards are NOT created equal, and there are a huge number of differences between cards. It is therefore important to read and understand all of the features associated with a rewards card before accepting the terms and conditions of the card.
4. Annual fee – If you want a no-frills, competitive-rate credit card, you will likely not need to pay an annual fee for using the card. However, you may notice that many of today’s rewards cards come with annual fees. Don’t automatically toss any credit card offers that charge an annual fee, though, as the rewards aspect of the card may be well worth the small, annual fee. In other words, consider all features of a card before discounting a card because of an annual fee.

A good credit card may mean something different to each person, but there are a few things that every consumer should be looking for when searching for a credit card:

• A competitive, annual interest rate – The best way to compare current interest rates is to check the web, as there are a number of great websites that detail the most competitive rates on any given day. Once you find this number, you can better narrow down your search for a competitive credit card. Beware of promotional or teaser rates, though, as this could give you a false sense of security. In reality, the credit card with the fantastic promotional rate may also be the card with the high default interest rate once the promotional rate has come to an end. In short, if you want to find a great credit card, skip the promotional rates and instead look for a card with a competitive, fixed interest rate.
• A fair balance transfer offer – If you need to transfer other higher-rate balances, you will want to find a credit card that not only has a competitive interest rate, but a fair balance transfer offer, as well. Make sure to examine the balance transfer fee, as this could often range from two to five percent of the transferred balance.
• An annual fee – Although it may seem like the best credit cards don’t come with an annual fee, the opposite may actually be true. It is important to not rule out the credit cards that charge an annual fee, as these credit cards may be the best in terms of fees, interest rate and terms and conditions. In other words, look at all factors when considering a credit card, not just the annual rate. If you use the credit card frequently throughout the year, an annual fee may seem quite small when compared to the money you could save with a low, fixed interest rate.

Let’s start with the obvious: if you pay your credit off, in full, each month, you won’t have to worry about pesky finance charges. Unless you are certain that you can pay off your balance in full, don’t charge it! Many of us have found ourselves in the unfortunate situation of not being able to pay off our credit card balances in full each month and end up with mounting debt. In addition, pay close attention to your card’s billing cycle and your due date, and plan to pay the bill at least five days before the due date to avoid any finance charges.

However, in addition to finance charges, you may be paying other numerous fees for your credit card:

• Annual fee – The simple fact is that you don’t need to pay an annual fee for the privilege of accepting a credit card. Although some individuals accept an annual fee because of other rewards and incentives offered by certain credit cards, in general you should not have to pay an annual fee on a credit card. If you have a good credit history with your credit card, chances are you can negotiate to have this fee removed.
• Cash advances – Cash advances should not be used, if possible. First of all, they come with exorbitantly high interest rates; second of all, there are often fees associated with them. Avoid them at all costs and you’ll be much better off.
• Balance transfer fees – Although it may be hard to do, many creditors are now offering fee-free balance transfers. Considering that balance transfer fees may cost as much as 5 percent of the balance of the transfer, this could end being quite a costly fee for you.

If you have a nice pile of credit card offers sitting in front of you, and you are ready for a new credit card (hopefully with attractive features and a low interest rate), then you can begin to compare credit card offers using three, simple factors:

• Interest Rate – So this sounds quite straightforward, right? You find the credit card with the best interest rate and go from there. However, consider that the current interest rate is just one piece of the credit card puzzle, as many credit cards offer attractive introductory rates that are not so attractive once the introductory period has ended. Therefore, before grabbing the first credit card offer with a zero percent interest rate, consider the length of the promotional rate and the interest rate once the promotional period has ended.
• Annual Fee – An annual fee is a touchy subject for many financial analysts; this is because some experts will tell consumers that they simply shouldn’t pay an annual fee, while others feel that an annual fee is well worth it if the card comes with very attractive rates and features. If a credit card offer comes with an annual fee, but also comes with its share of features, such as rewards and cash back, an annual fee may very well worth the expense. For the majority of consumers, however, it is really quite unnecessary to pay for an annual fee.
• Rewards – And now we come to the all-mighty rewards programs offered by many credit card companies. In a nutshell, rewards can definitely be, well, rewarding, if you follow a certain set of rules. In particular, forget about the advantages of any rewards program if you don’t pay your balance in full every month. Simply put, any rewards that you may earn through the credit card will likely be negated because of the finance charges paid to the creditor each month.

If you are interested in a Wells Fargo credit card, but you don’t know which one is right for you, take a look at our comparison between some of the most popular Wells Fargo specialty credit cards:

• Wells Fargo Rewards Card – We like the Wells Fargo Rewards Card because it charges no annual fee and because it offers a great, zero-percent interest rate for the first six months. After that, however, the average rate runs between 12.15 percent and 21.15 percent, so if you don’t always pay your balances in full, you may end up paying quite a bit in interest charges. The rewards program works when you earn points for your purchases; earn one point for every dollar spent and one point for every four dollars in debit card purchases. Rewards with the Wells Fargo Rewards Card include travel, cash rebates, gift cards and merchandise.
• Wells Fargo cash Back Card – The Wells Fargo Cash Back Card is great if you like earning cash back on your purchases. This card comes with no annual fee and a zero percent interest rate for the first six months. Afterwards, expect an interest rate between 12.15 and 21.15 percent, which is quite typical for cash back rewards cards.
• Wells Fargo Home Rebate Card – The Wells Fargo Home Rebate Card is quite unique, as it enables customers to pay down their Wells Fargo home mortgage principal. Like the Cash Back card and the Rewards cards, the interest rate will vary between 12.15 percent and 21.15 percent after the six-month, zero-percent introductory period ends.
• Wells Fargo Cash Back College Card – This Wells Fargo student credit card is a great way for college students to earn cash back on their purchases while building their credit. A low, introductory rate of between 7.9 and 13.9 percent, followed by a variable rate between 14.5 and 21.5 percent, is featured on this card.

In addition to all of the benefits that millions of consumers will enjoy with the CARD Act, individuals with gift cards will now be covered, too.

Gift cards are an incredibly convenient and practical alternative to cash gifts and are certain to please the recipient. Now, they are protected under the CARD Act, too!

Some of the new changes regarding gift cards include:

• No inactivity charges unless the card hasn’t been used in one year – Many gift card companies would charge steep inactivity fees much, much sooner; now you can enjoy your gift card without worrying that the balance will be affected by inactivity fees.
• No expiration for a period of five years – Many gift cards in recent years would expire in as little as 13 months; now, they cannot expire unless they have not been used for five years. Now you can actually take your time to decide what you want instead of spending before the gift card expires!
• All relevant information must be disclosed on the card – Any pertinent information about the gift card, such as the expiration date, the toll-free number and any fees related to the gift card will need to be written on the gift card. Now there won’t be any second guessing when you find a gift card that you haven’t used for a while!

Other features of the CARD Act that will change the way we use our credit cards include:

• The average late fee or over-the-limit fee will change to $39.
• Credit card companies can no longer charge an inactivity fee or an annual fee. For all those credit card consumers concerned with paying fees if they don’t use their credit regularly, this part of the CARD Act will prove to be incredibly useful.
• Credit card issuers will need to evaluate rate increases every six months on anything imposed after January 2009.

Canceling

A lot of people cancel their credit cards and do so for various reasons. A smart person who knows they can not afford more debt but can not trust themselves not to get in over their heads might cancel and pay off the remaining debt to preserve their credit as is until their financial situation is improved. others may not like the sudden changes in terms and conditions, such as higher rates, lower credit limits and an added annual fee. Some just might not like the service or the perks they are getting and decide to look for something else that better meets their needs.

Another good reason to cancel an account is that you have far to many credit cards or have opened another account and want to reduce your debt as much as possible.

However, cancellation may not always be the best route to take.

Reasons Not to Cancel

If you have a large purchase looming in your future, you might want to hang onto those cards, keeping their balances low. Lenders like to see plenty of available credit in your name. This could improve your chances of getting a great rate on financing for a home, car or other major purchase.

An older line of credit is going to look much better than a newly opened one. As long as the line of credit has been established for a length of time and has no negative marks, you really should consider keeping that credit card.

How to Cancel

If you do decide you need to cancel a credit card, don’t be hasty about it. Make a plan and do it in steps in order to maintain your credit rating.

First, put that card aside and stop using it. Pay off all the debt owed on it, even if it takes you a bit of time. By not using it, you are not incurring any new debt. Try to pay it off as quickly as possible, especially if your card carries an annual fee. You want the debt paid and the card canceled before you have to pay that fee again.

Once your debt is paid in full, call the company about your wish to close the account and cancel the card. However, do not leave it at that! Send the company a certified letter as to this intent as well, and be sure to keep a copy for your own records. Request confirmation from your credit card company and check your credit report. Make sure the account is marked as closed within 30 days. If not, call the company and insist that his be done.

There are many good reasons to cancel and many good reasons not to cancel. If you feel you must cancel an account, for whatever reason, be sure to do it the right way and keep an eye on things to protect your good name.

Well, it is best to start your search online, as many websites will compare credit cards, side by side, according to their APR, annual fee, terms and conditions, and perks. This will give you a broader picture of what types of credit cards may be available to you and what you can expect in terms of APR and promotional rates.

However, beyond that, here are some tips that will help you score the credit card that best fits your lifestyle and your budget:

• Chuck the annual fees – There is simply no reason to pay an annual fee for a credit card anymore, unless of course you are involved in an advantageous rewards program. But for most credit card holders, it just doesn’t make sense to fork over an annual fee for a credit card.
• Think “fixed” in terms of interest rates – You may find a credit card with a fantastic, variable interest rate, but beware that this interest rate can shoot up at any given time. The new credit card legislation has clear boundaries for creditors when it comes to raising interest rates on fixed-rate cards, but variable-rate cards are still fair game. No matter how attractive the offer seems for a variable rate credit card, your best bet is to find a card with a low, fixed interest rate.
• Don’t get pulled in by an attractive introductory rate – Introductory rates, which are often as low as 0 percent, may seem like a great deal. However, introductory rates are just that – introductory – which means that after the introductory period has ended your interest rate can shoot up to very high levels.
• Pass up rewards programs (most of the time) – For the average credit card user, rewards programs are just not beneficial. However, if you are a big spender, and you pay off your card in full each month, a rewards credit card may be worth it.