How will you use the credit card?
This is the first question you should ask yourself when you start to think about getting a new credit card.
If you're the type of person that pays their bill on time every month, and you're not interested in getting frequent flyer miles, then no annual fee credit cards are probably what you're looking for.
On the other hand, if you often carry a balance on your credit card, you'd probably be more interested in the low interest credit cards.
If you want to get a cash advance or a balance transfer, you should be looking at 0% credit cards. 0% cards give you a 0% introductory APR on balance transfers and cash advances for about 6-15 months depending on the card.
What are the APRs offered?
The annual percentage rate--APR--is the interest rate that you will have to pay if you don't pay your card in full for any given month, take a cash advance, or do a balance transfer.
Multiple APRs
A single credit card may have many APRs:
The APR can be the same for all credit on the card, but it can be different for purchases, cash advances, and balance transfers. The APRs for cash advances and balance transfers are usually higher than the APR for purchases.
Tiered APRs. Different rates are applied to different levels of an outstanding balance. For example, 15% on balances of $1–$600 and 18% on balances above $600.
A penalty APR. The APR may increase if you are late in making payments. For example, a card might charge you a higher APR if you are making a late payment for the 2nd time in a row.
An introductory APR. An introductory APR is a rate given for the first 6-15 months you have the card. After that period, a new, higher APR will kick in.
A delayed APR. Basically the same as an introductory APR. The APR is set at a certain level, until the introductory period ends, and then a new rate is given.
If you typically carry a balance on your credit card, a small difference in your APR can end up equating to a lot of money. Make sure you read the terms and conditions of every credit card application to make sure which rates apply to the card.
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