Thursday, February 25, 2010

Credit Card Comparison

It seems as though there are more and more specialized credit card offers these days. That by itself can be a source of confusion. Conducting a credit card comparison before you decide is absolutely vital. It helps out in that it helps you choose which offers are best suited for you.

The whole purpose of this article is to offer helpful information. First of all, you need to understand what the terms and conditions are. All too often the vital details are hidden in the fine print.

Knowing what the APR is is critical. APR is merely an abbreviation for annual percentage rate. It is the interest rate that is charged for balances carried from one billing cycle to the next. For anyone that carries a balance then low rates offers are a great place to start.

Then you want to take a look at the fees. Fees that we are familiar with include the annual fee, balance transfer fees, late fees and cash advance fees. There are others to consider of course, so be sure that you familiarize yourself with them all.

The grace period is another important aspect of a credit card. The grace period is simply the number of days that you have to pay off your bill in full before interest charges begin. Grace periods generally last between 25 to 30 days.

The credit limit is also an important detail that must be considered. The credit limits will vary greatly from one offer to another. Oftentimes small business credit cards will have higher limits than personal consumer cards.

There are of course other details to consider but the ones mentioned here are crucial and must be understood. It should also be pointed out that a rewards credit card often is accompanied with higher fees. When doing a credit card comparison this is just one of the many things that you must take into account.

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