Things to know about credit cards

Users hould shop around for the best credit card just as they shop around for other goods and services. A credit card often involves charges, especially if a user carries a balance. However, if a user has good credit, pays off their balance monthly and qualifies for a no fee credit card, there may be no cost involved in owning a credit card.

Since most credit card holders carry a balance, getting a low APR (annual percentage rate) on a credit card is important. The issuer must disclose this rate which is also shown on monthly credit card statements.

Many people get pre-approved credit card offers in the mail or receive offers over the phone. It is important to compare such offers to other available credit cards and choose the best one for the user's needs.

In addition to the interest rate, many cards have other fees such as an annual fee, a one-time issuer's fee and other fees. It is also important to know under what conditions the APR changes. If there is an introductory interest rate period, it is important to know how long that period is and what the rate is afterwards.