Using Your Credit Cards

The costs of using your credit cards can vary significantly from issuer to issuer. The informed consumer should carefully select the credit cards they wish to carry rather than responding to those issuers that have contacted them to offer them credit.

Generally the costs of holding a credit card can be broken into two components. The first component is the interest rate charged on outstanding balances.  Typically there is a grace period and any charges that are not paid within that period are subject to interest.  The second component is the annual fee that the issuer charges the consumer for the privilege of holding that credit card.

The most economical card for you will depend on the way in which you choose to use your card.  If your intent is to pay off all charges at the end of the month then select a card that with a moderate interest rate, longer grace period, and no annual fee.  The interest rate is not the primary consideration, as you don’t anticipate incurring any interest charges. 

If on the other hand you intend to carry a balance, the interest rate becomes more important and you should shop for the lowest rate combined with the lowest annual fee.  Be advised that credit card offerings are as varied as they are numerous and the only person interested in protecting your best interest is you.  Shop selectively for the best credit card for you.

For information on specific credit cards visit www.Bankrate.com. Happy Hunting.

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Sharon McLennon is a licensed real estate broker for Splendor Realty, Inc., a full service real estate brokerage office serving Dade, Broward and Palm Beach counties. The office is located at 1773 N. State Road 7, Lauderhill, FL 33313.  Ms. McLennon can be reached via email at smclennon@splendorrealty.com