All About Credit Cards

How do you compare credit card offers? Do you look at the APR? The necessary credit score? A strong rewards program? Annual fee? Something else? Well, here is a short list of factors that should take into consideration when shopping different student credit card offers.

1. Type of card – There are three main types of credit cards you can get:

* Secured cards are for those with poor credit and require a security deposit.
* Regular cards don’t have many features but have higher credit limits than secured cards but lower limits than premium cards.
* Premium cards come in the various metallic flavors (silver, gold, platinum) and have the highest credit limits. They can also have rewards programs like cash back or travel insurance.

2. Grace period references the number of days you have to pay your bill in full without a finance charge. This isn’t standard and does vary by card.

3. Calculation of the finance charge is important as I discussed before with regards to the two-cycle average balance. Take a look at how the different cards work their interest accruals.

4. Fees are not only in terms of annual fees but also over-the-limit fees, late payment fees, and balance transfer fees.

5. Cash advance features which refers to how much it costs to use, how it’s accessed (ATM or checks) – as well as any associated fees and how payments are credited.

6. Credit limit is determined by your credit history, but some cards come with a predetermined limit.

So, next time you’re in the market for s new card, keep this list in mind and be sure to check it twice.