Have you ever started to buy something, only to discover you don’t have a single dollar in your wallet? If so, you are probably a part of the growing majority of Americans – people who pay for just about everything with credit cards. From hair cuts to fast food to major appliances, more and more Americans are using credit cards to pay the bills. However, unlike money, where a dollar is a dollar, credit cards are not created equal. There are many different credit cards and they are all a bit different from each other. When you are planning to get a new credit card, you should shop around for the best bargain.
Before you decide to accept a credit card, be sure you review the interest rate the company will be charging. This is extremely important because this rate will be used on every dollar that you charge on your new credit card. Since credit cards can have interest rates that are higher than 18%, this can really add up over the years. Often, credit cards will offer a low introductory rate to people with good credit to encourage them to accept the card. This rate may shoot up if you are late with a payment or you go over the credit limit on your card, so be sure to read the fine print. Remember, if you have good credit, you can really shop around for the best deal. The higher your credit score, the lower your interest rate will be.
Another thing you should take a look at before you accept a new credit card is annual fees. Some creditors charge a yearly annual fee that is added to the credit card and treated as a part of the balance. People with less than pristine credit will usually be charged a low annual fee, but for those with bad credit, the fee can be fairly hefty. Of course, the best credit cards have no annual fee at all, but they are reserved for people who have good credit.
As you are searching for the best deal on your new credit card, be sure to shop around and look at the details of different cards. While you may think of banks when you think of creditors, there are actually several others that provide credit cards for consumers. You may be offered a card by a major credit retailer, a retail store, or an alternate lender, as well. Each of these creditors can really differ in interest rates, finance charges and additional fees. Since you could save as much as 10% in interest by checking out the different creditors, it is definitely worth the effort. Just be careful that you don’t select a card that has an extremely low introductory rate for a short period of time that becomes extremely high when the introductory period is over. As you follow these simple tips on how to find the best credit cards, you will be able to make sure that you are getting the best deal you can get. This can really help you save money over the years.