Several key variables should factor into your decision when choosing a credit card. The card's APR is generally of central importance, as it indicates the cost of using the card. Although eligibility for a low APR card is largely determined by the holder's credit history, there are still other features to consider. After reviewing a card's APR, there are still several other features to compare, such as annual fees, purchase rates, and penalty fees.

Many cards also offer bonus incentives, which you might also want to consider when making comparisons. These incentives usually mean that you can earn rewards for every purchase made with the card. For example, cash back cards can provide an automatic rebate for a certain percentage of the total amount spent using the card. The rebate is usually deducted from the current balance. Other rewards programs grant frequent flier miles for travel-related purchases.

Making Credit Card Comparisons

Some cards offer discounts on specific goods or services. Chances are, you might be able to find such a card to suit your intentions. For example, if you travel frequently, there are credit cards that provide automatic discounts when used for travel expenses in conjunction with certain businesses, such as hotels, restaurants, car rental agencies, and gas stations. Other cards might provide discounts if you spend a certain amount of groceries. Some retail outlet chains offer cards that can earn discounts when used at their stores.

Before deciding on a credit card, you'll also want to familiarize yourself with each card's policies. For example, many cards offer a standard grace period, meaning that finance charges are only applicable once the monthly billing period is passed. However, some cards don't offer this feature, which means they can start charging you interest as soon as you make a purchase. You should also learn the card's cash-advance policy. Some cards might charge a higher interest rate for a cash advance, and many don't include cash advance fees in the standard grace period. Finally, the Internet can be a useful resource when considering which credit cards to apply for. Online newsgroups and message boards often feature messages from customers citing the pros and cons of many services, including credit cards.