Things to look for in a Credit Card

Numbers always sway people and the interest rate on a card is usually the first thing they would want to check. There are three main types of interest to look for. The initial interest rate is the eye catcher. It is the lowest rate the bank will advertise and it is subject to change in a certain amount of time. You can find this information in the fine print.

Next, there are variable interest rate credit cards with Annual Percentage Rates (APR). These APRs are calculated based on the average variable percentage rate. Variable interest rates may make you feel nervous but do not succumb to your nerves. Variable rates have a small amount of change associated with them. The changes can be positive or negative. Banks will often alert customers a change is coming.

Lastly, there is the fixed interest rate. Again, the fine print states the truth. A fixed interest rate only stays fixed for a limited time. These types of interest rates, even though they are not the lowest interest rate, offer comfort. The bank is obligated to notify customers of a change 15 days ahead of time.

There are so many fees and other things involved in having a credit card. There are paper printing fees, activity fees, international fees, and protection fees. If you redeem an award, there are fees on the reward. If you are late on a payment, banks can remove reward points or assess fees. Penalties exist for Sub-prime customers or customers with bad credit. Moreover, anytime you go over your spending limit penalties are assessed.

Once credit worthiness is determined, the bank will set your credit limit. As long as you stay within your limit, you will avoid fees and penalties associated with exceeding your limit. To ensure your success in managing your credit card, keep balances within 20 percent of your credit limit to be safe.

Customer service is important in any form of business. You want to avoid credit cards that have a low customer rating. You also want to avoid cards that have repeat issues listed with the better business bureau. Focus on cards with high approval ratings. Great cards are not the cards that really have no customer problems, but look for the ones with positive resolutions.

Another great plus for many cards are incentives. You can earn points and feel good about redeem the points. Other cards offer airplane tickets, vacation discounts and so much more. There is a lot to consider when you choose a card. Make sure you weigh the cost.