The Right Credit Card For You

While the outstanding balance and the periodic rate are important factors in choosing a credit card, they shouldn't be your only considerations. First decide if you want a secured credit card or unsecured credit card. Also, other credit card plan features may be more important to you, depending on how you use the credit card. For example, if you don't always pay your monthly bill in full, you'll probably be more interested in a low APR credit card. With a low apr credit card you won’t be paying that much in interest, but on the same token, you may be missing out on some special deals. Even so, it is always good to look into getting a low apr credit card. On the other hand, if you always pay your monthly bill in full and card enhancements such as frequent flyer miles don't interest you, your best choice may be a card that has no annual fee and offers a longer grace period.

The grace period is the number days between the statement date and the due date during which you can pay your bill without incurring a finance charge. The card issuer may refer to the beginning or ending point of the grace period and tell you about any conditions that apply. For example, the issuer may say you have "25 days from the statement date, provided you have paid your previous balance in full by the due date." Keep in mind that the statement date is not the date on which you receive the bill; it is the date on which the issuer prepares the statement, which may be a week or two before you actually receive the bill in the mail.