Why Use

  • There are lots of different types of cards to choose from.
  • There's no perfect number of credit cards you should have.
  • You must understand your card's interest rates.
  • Comparing cards is vital.
  • The contract is binding.
  • You can pay in full...or not.
  • You have rights

The total amount you may charge, including interest and fees.
The interest charged on carried-over balances. It usually stipulates a higher rate for paying late, charging beyond your limit, balance transfers, and cash advances, too.Most calculate interest charges by averaging the daily account balance, then multiplying that figure by the periodic rate (APR divided by the number of days in a year). Fixed rate APRs have consistent interest rates. Variable APRs are tied to an index (often the prime lending rate, which is set by the Federal Reserve) and thus fluctuates. The grace period is the number of days (generally between 20 and 30) you have to pay in full before interest accrues. Ordinary fees include those for cash advances, balance transfers, paying late, exceeding your credit limit, and sometimes an annual fee. Avoid cards with nonstandard fees, which Manning lists as application charges, not using the card, calling the creditor if they don't have an 800 number, online account management, and terminating the account.