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Almost
everybody receives numerous
credit card
offer letters in their mailboxes at least once a
week… if not every single day. The envelopes
usually contain some sort of wording like, "This
is the last chance!" or, "Offer Expires Soon!"
With
so many pieces of mail arriving on a frequent
basis, all written with similar "rush" tones, it's
hard to figure out which one is really a genuinely
good offer. It can be tough to compare the
differences between potential credit card accounts
because they may seem exactly the same at first
glance, but may be very different once the fine
print is read and understood.
So,
before blindly filling out the application for a
credit card that looks good at first glance, make
sure to carefully go over the details of the card,
and make sure it's really the best one available.
Fees
Are there fees associated with the credit card?
Many
offer "no fees" for the first few months that the
account is open, but then begin charging fees for
making purchases, using the card for
cash advances
and sometimes there are even
annual fees
for owning the card! Different credit card
companies charge different fees for the same
services, so comparing the fees on all potential
credit card offers can help determine which card
is the best deal.
Annual Percentage Interest Rate
The annual percentage
or "APR," on credit cards is one of the details of
the card that is easy to determine. Obviously, a
card that charges 2.9 percent on balances is going
to be a better deal than a credit card that
charges 15.9 percent on balances. However, one
thing to consider is whether or not the
is a
variable rate
If it's variable, that means that the credit card
company can raise the interest rate. So, read the
fine print on the back of the credit card
application to determine whether or not the APR is
fixed or variable, and if it's variable - find out
the terms of possible raises in rates.
Interest rates can also vary depending on the type
of charge on the card. For example, purchases may
be at a 2.9 percent interest rate, but cash
advances may be at a much higher rate. For anyone
who truly believes that they will never use their
credit card for cash advances, this difference in
interest rate percentage may not be a concern.
"Miles" or "Points" Cards
Besides credit cards that can be simply used for
purchasing goods and services, some credit cards
offer frequent flyer miles on designated airlines
or "points" that can be used in a specific store
when dollars are charged to the card. Most times,
for every dollar charged, a mile or a point is
earned. These types of credit cards usually have
steep annual fees associated with them - usually
between $50 and $100 per year. However, many times
the annual fee is worth the cost if enough points
can be earned to actually earn some sort of
reward, such as a round-trip airline ticket.
Making Payments
Different credit cards are on different monthly
payment schedules. Some require that payments be
made every 30 days, and others are slightly
different. It's important to choose a credit card
that has a billing cycle compatible with when
money will be available to make the payments.
Also, all credit cards will charge late fees if
monthly payments are made late. Make sure to
choose a credit card with the least severe
penalties for late payments (although it's best to
NEVER send a payment later than its actual due
date).
With so many credit card choices and so many
potential offers arriving practically daily in the
mailbox, it's not a good idea to jump on the first
one. Gather a few that look good and carefully
compare all of the cards' terms and conditions,
fee structures,
interest rates,
and payment schedules, and use that to determine
the very best one.
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