smart money strategies

Shopping for a Credit Card

Which of these features is the most important when choosing a credit card?

1. The “APR” or annual percentage rate of interest you will pay on the outstanding balances
2. The credit card rewards offered, such as “cash back” or “travel miles”
3. The design choices you have for customizing the front of your credit card

“A” is the correct answer. Also check how long the introductory APR applies and if the long-term APR is fixed or variable. Compare how much credit card providers charge on fees for late payment, cash advances, and balance transfers. Finally, check the grace period. This is the number of days before interest is charged on new purchases. It normally amounts to 21-30 days.