Compare the costs on credit card applications and saveFriday, July 06, 2012 at 11:06:44 AM
The federal government recently did consumers a big favor by requiring that all credit card applications show in plain language exactly how much the account they're examining might end up costing them. This rule
it puts you in a great position to maximize your savings.
It's important to keep in mind that whenever you're looking to get a new credit card account, you should always take the time to compare all the costs associated with it. That includes not only the interest rate you might face for any balance you carry over from one month to the next, but also the annual fees and other charges an account may have associated with it.
By comparing and contrasting these costs, and taking into account your own personal spending habits, it can be easy to find the best credit card offers available to you.
Start with the interest rate
Does the card you want have a high interest rate, or a low one? Will it matter? If you don't usually carry a balance, the interest rate on a credit card offer will likely be of little consequence to you, and therefore you may be free to explore a number of options that might otherwise be a hindrance to some borrowers. But if you're the kind of person who does carry a balance, the interest rate you pay on your card will likely be your paramount concern, since it will likely have the most significant impact on what the card ultimately costs you.
Move on to the fees
Usually, you'll have to pay an annual fee to maintain a credit card account - unless the card specifically does not carry one - and this should certainly be considered as part of your credit card application process. However, you might find that some lenders who offer no annual fee credit cards in the first year the account is open, which may allow you to get a better idea of what your overall costs will be on the card without taking that into consideration.
But there are other fees as well. For instance, most balance transfer credit cards come with a fee for moving your loan from an old account to a new one, and that will have to be factored into your decision.
Reviewing all aspects of every application will help to ensure that you're getting the best credit card deals available to you.