How to Compare Fixed Rate Credit Cards
Compare the APRs of different card offers., Decide what you can realistically afford to pay down on the card each month., Be aware of any late fees or penalties that you may incur., Determine whether a credit card's rewards program would be of...
Step-by-Step Guide
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Step 1: Compare the APRs of different card offers.
The APR is the annual percentage rate.
A yearly rate of
10.9 percent means you'll pay less interest on the balance than a rate of
18.9 percent.
When considering APR, remember credit card companies are allowed to change their fixed rate with 45 days written notice. -
Step 2: Decide what you can realistically afford to pay down on the card each month.
Chose a card with an APR and minimum payment that you can afford.
The minimum payment is the minimum amount due on the balance per month.
To accurately gauge how much you can afford to pay each month, take a detailed look at your financial situation.
Make a list of your monthly expenses.
Include utilities, rent or mortgage payments.
Also list expenses such as food and entertainment.
Compare this to your projected monthly income.
If you are choosing a card to use for one or several major purchases, you can use an online credit card repayment calculator to determine which card will save you the most money over time. , Some credit cards charge late fees for late payments.
Your APR can as much as double on all late balances.
You may incur a fee for going over your credit limit., Many banks issue cards that offer benefits like cash back on purchases, roadside assistance, accident insurance or reward points.
This is where you can save money with gift certificates or in-store discounts.
Some people chose cards that earn them free airline miles., Credit card companies are required by law to fully disclose their rates, terms and privacy protection policies.
Read them when you receive your card and always read the updates included in your bill as terms and rates do change periodically.
Changes might include an increase in the APR or the minimum payment due. -
Step 3: Be aware of any late fees or penalties that you may incur.
-
Step 4: Determine whether a credit card's rewards program would be of benefit to you.
-
Step 5: Read the fine print.
Detailed Guide
The APR is the annual percentage rate.
A yearly rate of
10.9 percent means you'll pay less interest on the balance than a rate of
18.9 percent.
When considering APR, remember credit card companies are allowed to change their fixed rate with 45 days written notice.
Chose a card with an APR and minimum payment that you can afford.
The minimum payment is the minimum amount due on the balance per month.
To accurately gauge how much you can afford to pay each month, take a detailed look at your financial situation.
Make a list of your monthly expenses.
Include utilities, rent or mortgage payments.
Also list expenses such as food and entertainment.
Compare this to your projected monthly income.
If you are choosing a card to use for one or several major purchases, you can use an online credit card repayment calculator to determine which card will save you the most money over time. , Some credit cards charge late fees for late payments.
Your APR can as much as double on all late balances.
You may incur a fee for going over your credit limit., Many banks issue cards that offer benefits like cash back on purchases, roadside assistance, accident insurance or reward points.
This is where you can save money with gift certificates or in-store discounts.
Some people chose cards that earn them free airline miles., Credit card companies are required by law to fully disclose their rates, terms and privacy protection policies.
Read them when you receive your card and always read the updates included in your bill as terms and rates do change periodically.
Changes might include an increase in the APR or the minimum payment due.
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Amber Nguyen
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