Are all credit cards created in an equal manner? The answer to this question is a resounding NO! Credit cards also vary quite dramatically by their terms and conditions and they can both cost you money or save you money, depending on which one you choose to have. The world of financial institutions is extremely competitive at marketing credit cards and you will discover that the terms and conditions can be quite different from one company to another. Be smart and take a close look at the small print.
Of course, we are all looking for the most amount of credit for the least cost in the long run. A credit card with a low annual percentage rate (or APR as it is also known) is always favorable. This is the amount of interest applied to your account for the privilege of renting the credit card company's money over a certain period of time.
Making at least the minimum payment every month on the required date means you will not see an increase in APR which is sometimes what happens if your payment is late. A delayed or missing payment could well boost your APR to between 18 and 22% where it will remain for a considerable amount of time.
Working on the theory that you are a good credit risk and you settle your monthly payments in a timely manner, you should look for a card which offers you that extra little something such as reward points which you can exchange for goods, meals in restaurants, tickets for movies and weekend breaks in hotels.
With a card like this you earn redeemable points as you make your day to day purchases which result in the overall deal being even better still. If you use your credit card regularly and pay in full each month, it will not take long before you have two free tickets to jet off almost anywhere in the world for a holiday.
