Sunday, August 19, 2007

Credit Card Tips

Since, I have written a lot about credit cards lately, I noticed that I haven't written about the type of factors you should consider when choosing a credit card. So, here are a few tips:

Grace Period:

A grace period is the time you have to pay your bills monthly before your credit card company starts charging you interest on the unpaid amount! This is one of the most important factors when considering a credit card from any bank. Firstly, you need to make sure that there is a grace period included, and secondally, for how long. Of course, the longer the better. Find out the interest rates, and the minimum amount you must pay on your credit card in the grace period.


Find out about any hidden fees with your credit card such as membership fees, annual fees, and specific transaction fees. You should be looking for a credit card with no annual fees but remember that this is not the only factor. Sometimes, credit card companies that don't charge annual fees often increase their interest rates!

Low Interest Rate:

If you feel that you would not able to pay your credit card bills within the grace period, then this could be the most important factor when choosing a credit card! Remember, the interest is charged on the amount that is not payed. So, make sure that you compare the interest rates of all credit cards.


Often, credit card companies will include benefits with your credit card such as free insurance or bonus points. Ask, the credit companies for these benefits.

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