Comparing Credit Cards
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What should I look at when I compare credit cards?
When you compare credit cards, the interest rate isn't the only thing that matters. For example, a low-interest card becomes less attractive if the fees end up amounting to more than the interest. Keep the following things in mind when comparing:
- Fees: Credit card companies have fees for late payments, membership, inactivity, and more. Be sure to choose a credit card with reasonable fees that aren't usurious.
- Triggers: When you pay late, it can trigger a higher interest rate on your credit card. In addition to late payments, there may be other events that trigger consequences that you're not comfortable with. Be sure to read the fine print when you compare credit cards so that you choose the card with the best terms.
- Interest rate: The interest rate might not be the only factor to consider, but it's certainly an important one when you compare credit cards. Choose a reasonable interest rate that has other terms that complement that rate.