- Always carefully read the terms of the credit card agreement before signing up for any card. The credit card agreements tells you how much it will cost to use the card by detailing how much interest the company charges you for balances as well as any other fees or associated costs, such as an annual fee.
- If you plan on using your credit card sparingly or make sure that you pay off the balance at the end of each month, you can afford to select a card that has a relatively higher interest rate but which offers you incentives or rewards you know you will use. For example, if you use your card to buy groceries or other common household items, a card with a good cash back program essentially gives you a discount on all the items you purchase.
- If you do plan on using your card and carrying a balance from month to month, you should select a card that offers you the lowest possible interest rate you can get. Credit card issuers offer a wide variety of cards with many different interest rates, but you should pay special attention to the amount of interest charged on purchases. This is expressed as an annual percentage rate (APR) and is the amount of interest charged to you over the course of the year.
- If you are worried about the chances of getting approved for card, you can apply for a credit card through lenders that have easier credit approval requirements. The best cards in these situations are usually those offered by gas stations, department stores or those offered through your local bank or credit union with whom you have a financial history. You should still evaluate the terms of these cards carefully before making a decision.
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