Credit Cards : How to Know Which are the Best Credit Cards

By Elizabeth Beecher

In order to determine whether or not you are getting the best credit card deal available, you should be careful to read all the fine print detailing how your card will work. Some people find this research “boring” as well as time consuming, but becoming familiar with the terms, conditions and costs is important before you sign up for a card and may save you time, money and grief from possible financial penalties incurred after the fact if you are not fully aware of the guidelines of your best credit card.

Some cards have an annual fee. However, if you only want a low rate credit card with no frills, there is no reason to sign up with a company that charges you a yearly fee. Some popular, high end credit cards provide rewards and perks though in exchange for an annual fee and you should weigh these offers carefully.

What is the card’s APR? If you carry a balance, the lower the APR (Annual Percentage Rate), the less money you will pay on the best credit card. If a credit card comes with a very low introductory rate, you should know how long this rate will last. You should also calculate whether you will be able to pay off your card balance before this “teaser rate” expires.

Fixed rate credit cards are initially more desirable than cards with variable APR because the interest rate does not change each month or each quarter. When you sign up for a card with a fixed rate of 11.99%, for example, it is likely you will be paying this rate for quite a few months. However, you should be aware that fixed rate APR is also liable to change. Federal law permits card issuers to make changes at any time as long as they provide notice to card holders before the new rates take effect. A notice period of only 15 days is required though.

Interest on variable rate credit cards fluctuate with an index. Most card issuers use the Wall Street Journal prime rate as their index. Variable rates – which can change every month of every quarter – are used by approximately 70% of credit card issuers.

Some variable rate credit cards have minimum APRs, which are also known as floors. No matter how much the Fed cuts, once your credit card hits its floor, it will not go any lower.

It is also important to be aware of the length of your credit card’s grace period which is the time from the statement date to the date when your payment is due. If your payment is made in full by the end of the grace period, you are not charged any interest. If you only make a partial payment, interest begins at the end of the grace period. Many credit card companies have decreased their grace period from 25 days down to 20 while some companies do not allow any grace period at all.

When you have done your homework and found the best credit card that appears to be desirable to you, make sure you have checked their penalty policies before you make the commitment and sign on the dotted line.

There's often a lot of confusion about credit cards and which credit card is the best fit for your needs. All credit card companies have amazing offers - or so it would seem. When deciding on a credit card - read the fine print and make sure you know what you're actually signing up for.

Card Fusion has the information to help you decide which credit card is best for your situation. The Learning Center is an excellent resource when shopping for a credit card.
Article Source: http://EzineArticles.com/?expert=Elizabeth_Beecher

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