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The Art of Comparing Credit Cards

By: Steve Baik

With so many choices on the market, it's sometimes hard to find the right credit card for your situation. Not only do you receive offers by mail, but there are literally thousands of websites claiming to have the best offers. This article will run you through a checklist of key features that you should compare before applying for a new credit card.

  1. Does the credit card offer come with a 0% Intro APR?
    This feature can save you tons of cash if you utilize it properly. Remember to read the fine-print carefully because some 0% Intro APR offers only apply to balance transfers, and not to new purchases.

  2. Compare the standard APR's.
    This one is pretty explanatory. By choosing the one with the lowest APR, you can reap the benefits of a low rate even after your Intro APR expires.

  3. Does the credit card have an annual fee?
    Most consumer credit cards do not come with annual fees. Credit card issuers typically attach annual fees to certain types of cards, such as business cards and sub-prime (bad credit) cards.

  4. Does the credit card have a setup fee?
    If you have good credit, you probably shouldn't worry about this. However, for people with credit problems, you may because most sub-prime credit cards charge this fee. This is a good reason why you should check your credit report before applying for any type of account.

  5. Does the credit card have an application fee?
    This is another attempt by the sub-prime credit industry to take advantage of consumers with less than perfect credit. As if the high interest rate, annual and setup fee wasn't enough, some sub-prime credit card issuers charge an application fee as well. For those with good credit, you mostlikely won't have to worry about this fee.

  6. Does the credit card offer rewards or benefits that interest you?
    Do you travel a lot? Do you frequent hotels? Would you like cash back on purchases for gas or shopping? These are just a few of the many questions you can ask yourself when applying for a new credit card. Choosing a card that offers rewards geared towards your interest or occupation can help save you money.
In addition to comparing the key features of each card, you should never forget to read through the terms and conditions. This is where you'll find most of the fee schedules.