And don’t be tempted to accept credit card offers when shopping at retailers this holiday season. They can end up costing you more.
When looking for the right credit card, it pays to compare. When applying, consider the card’s features and benefits – and ALWAYS read the fine print. Consider the card features that have the greatest impact on the cost of using a card and be sure to evaluate these three items:
- Fees – Are you required to pay an annual fee for the use of the card? Review the cost of making a late payment. This can be expensive, and some lenders may increase your APR if you make a late payment. Also ask if there are any monthly or other transaction, balance transfer fees or cash advance fees.
At First United CU, our card will help you to save with no monthly, annual, cash advance, or balance transfer fees. Late payment fees are fair and never excessive.
- Annual Percentage Rate (APR) – This is the interest you pay for purchases and cash advances, defined as a yearly rate. Our card’s low fixed rate starts at just 8.99% APR, less than many other cards – including big bank and retailer cards.
- Rewards – Will you earn rewards? If so, what type of rewards? What can you redeem your points for? Do you have versatile choices? Our program offers several options – including points for purchases and a new cash-back card.
At First United CU, you choose the perks that work best for you.
A common strategy by retailers is “preapproving” you for their card at check-out.
Don’t be tempted to accept these offers at the point of sale. The cards often carry an expensive or variable APR – which can end up costing you more, especially if you tend to keep a balance. These lenders can also impose costly late fees, annual fees, or balance transfer fees. All these costs can add up in a hurry.
It pays to compare.
If you need help deciphering credit card offers, stop in and see us. Or to learn more, CLICK HERE. We’ve detailed our card programs so you can make an easy comparison.