Is a Free Credit Card Really Free?

A Free credit card just mean that the offer is free. While looking for a credit card, you should look at the costs and the way you spend and pay bills. You should look at the annual percentage rate or APR, the annual fee, and the grace period. There's also cash-advance fees, late payment charges, and over-the-limit fees. Examine your paying habits. Do you pay the total every month? Do you carry over a balance? You should find the credit card that fits you.

What do all these terms mean? The annual percentage rate or APR is a measure of the cost of credit expressed as a yearly rate. The annual fee is a certain annual charge akin to a membership fee. A grace period is a time period where you can pay your bill without racking up finance charges. The time period is usually twenty-five days.. The grace period usually works if you pay the balance in full every month.

A cash advance fee is a fee for getting a cash advance. The fee is separate from the interest rate charged on the advance. A late payment charge is levied when the payment is late. If your payment is after the grace period, you may get a finance charge(the interest on the balance owed) and a late payment charge. Some cards may charge a penalty rate if you have more than one late payment in a several month period.. Over-the-limit fees happen when you charge beyond the card's credit limit..

In trying to find the right credit card, follow these steps.

1. Call the card companies to verify the publicized details. Ask if they have other plans.

2. Find out the availability of the card. Is it accepted locally, nationally, in one store?

3. Look at the interest rate. Is it variable or tiered?

4. Don't look for free credit cards. Look for the best card for you.