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How to Understand and Compare Credit Cards
From:
Audri G. Lanford_ Ph.D. -- Going Paperless -- Productivity Expert Audri G. Lanford_ Ph.D. -- Going Paperless -- Productivity Expert
Boone, NC
Thursday, July 22, 2010

 
Before you start to compare credit cards, it's important that you have a basic understanding of the terms, practices, and state of the credit industry itself. After all, it's pretty much impossible to compare things if you don't understand what you're looking at! With that in mind, this article will help you develop a stronger understanding of what your credit card terms and conditions actually mean.

Understanding the industry

Before you start to compare credit cards themselves, you need to know how the industry works. Depending on the state of the economy and how well the industry is doing, credit card rates and terms can differ a lot. The industry is pretty complicated, so the best way to keep up is to regularly check an informative site like Credit Card Whiz Kid and see what's new.

Understanding the specifics

When you sit down to compare credit cards, you'll want to take a quick look at the bold print. That's where they'll spell out all the things they want you to notice, so you can rest assured this'll be the good stuff. Once you skim that, head straight for the fine print: all the little details that really make a card good or bad. Here are some of terms you'll find and what they mean.

-The interest rate is the amount the card will charge in interest on purchases and cash advances. You should also be able to see how they calculate interest. For example, some credit cards calculate interest based on the amount you carry on the first of the month, not the day your payment comes due.

-The grace period is the amount of time between your purchase and the time interest begins to accumulate. Most credit cards have a grace period on retail purchases, but not cash advances.

-Introductory offers are special deals that expire after a given time. Make sure your low interest rate doesn't fall into this category.

-Fees are service charges you have to pay your credit card. Some have an annual fee, but many also have fees for various other services (such as late payments or cash withdrawals), and it pays to know what they are.

Once you go through the fine print, you'll have a more realistic idea of what your credit card actually looks like. It's a lot easier to compare credit cards when you know what you're looking at!

For more tips on the best credit cards, saving money and avoiding getting taken, check out CreditCardWhizKid.com, a website that specializes in providing credit card tips, advice and resources.

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Name: Audri G. Lanford, Ph.D.
Title: CEO
Group: Lanford Inc.
Dateline: , NC United States
Direct Phone: 815-642-0460 NIS
Main Phone: 231-680-0486
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