Credit Cards - Watch Out For The Sting In The Tail!
It's a popular misconception that the best credit cards are those that offer the lowest annual percentage rate for interest. Low APR is one way to compare cards, but there are often mitigating circumstances that can turn a low interest rate credit card into a very expensive proposition. Before you leap on that offer for a credit card that offers an APR that's several points below average, take the time to do some homework and be certain that it's as good a deal as you thought.At www.moneyeverything.com, you can compare credit cards in several different ways to find your own personal best credit card. Before you apply for a credit card, be sure to check the fine print for these potential stings in the tail.- High annual membership feesSome cards that offer very low interest rates on purchases have annual membership fees that make the offer far less attractive. If you tend to carry a low balance on your accounts - or no balance at all - then it simply doesn't make sense to pay a high annual fee for the privilege of using that credit card. The general rule of thumb to follow is if your average annual finance charges are less than the annual fee, pass on the credit card.- Outrageous late feesMost credit cards will charge a late fee if your monthly payment is late, but some credit cards take it further. Read the terms of your service agreement carefully before you apply for a credit card to find out exactly which fees are assessed and how. Some credit cards that start out with very low interest rates can become prohibitively expensive if you're late just once - you not only pay a late fee, you also pay a higher interest rate, as high as 29 APR, for as long as you keep that credit card. - Cash advance feesOne attractive option for many major credit cards is the ability to take a cash advance that's counted against your remaining credit limit. It's like being able to write yourself a loan whenever you need it. Again, be sure to read the fine print in your terms of service carefully. Many credit cards charge a flat rate cash advance fee that also is added to your balance, and many more also charge a different rate of interest for cash advances than they do for purchases and bill-paying.- Balance transfer feesOne popular reason to apply for a new credit card is to transfer your balance from a high interest credit card to one with lower interest - sometimes even 0 on the balance transferred for up to six months. Balance transfer fees can get you both coming AND going, though. Before you decide to apply for a credit card with a 0 balance transfer, check the balance transfer fees for both your current card and the new credit card you're considering. Many cards charge a cash transfer fee to process the transfer to another credit cards, and/or a transfer fee to accept a transfer from another credit card. If you end up paying both on a balance transfer credit card transaction, you could end up paying more than you'll save in interest.When you're ready to compare credit cards, visit www.moneyeverything.com where you'll find information on credit cards in general, on how to compare credit cards and on specific credit card deals that will make it easy for you to choose the best credit card for your needs.
About the Author
Jon Francis has been involved in various areas with the world of finance and has a keen eye for a bargin! He has an in-depth knowledge of the credit card UK market and now helps others get the best from a credit card. For more information visit http://www.moneyeverything.com.
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