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Having a credit card is essential in today’s fast paced economy. When you decide to get a credit card you are taking on the responsibility of carrying some debt. It is important when picking the perfect credit card that you look at different options and compare which credit card is right for your lifestyle.

In comparing credit cards, there are certain features that you should take into consideration. Below are the most important to consider.

Introductory Transfer Rates

This is the rate that a credit card charges when you transfer balances from some of your existing cards onto the new card. The intro rate only applies to the transferred balances and not to new purchases made with the card. The transferring of card balances is a strategy to pay off debt faster because the new card will offer a low or 0% interest rate for a specified period of time, 6 months to 18 months.

APR Or Annual Percentage Rate

This is the rate of interest that the credit card company charges for new purchases you make with your credit card irrespective of whether you are in the into period. This is an important number to know because you will be paying this percentage for the life of the card. If you always payoff your balance monthly then a high APR is insignificant. However, if you do have some balances that carry over from month to month this figure is important.

Types Of Rewards Programs

Check to see if the card you are interested in has a cash back or rewards program. These are special cards that generally have higher interest rates but offer cash back or rewards for purchases you make with your credit card. Some programs can be in the form of cash back that can be applied to special areas of spending like, groceries, gasoline, entertainment, etc. Rewards programs can include the accumulation of points that can be applied for various gifts or travel vacations.

Annual Fee or No Annual Fee

If you are looking for a basic credit card, you can find many with no annual fees. They often have slightly higher interest rates but this should not be of concern if you pay your balance in full each month. The fancier credit cards that offer more amenities such as rewards programs, etc. tend to have higher annual fees to offset all the benefits provided.

Period Of No Interest

Some newly purchased credit cards offer a limited period of time when items you purchase will not be accountable to interest charges. This no interest period varies from 45 days to 65 days. Obviously, the longer time period is a better deal for you.

Besides the main items listed above, you should also consider additional penalty fees such as late payment fees and above credit limit penalties. If you are a conscientious consumer, pay your bills on time and stay within your credit limit, then these fees will not apply to you. However, it is always good to know what these fees are in case a financial emergency occurs.

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