The APR is crucial. If you revolve your balances, you may end up buying items at a low interest and paying for them at a much higher one. APRs on all cards are averaging 15.16 percent, according to Consumer Action, which compares cards every year. Consumer Action found a wide range of APRs this year on mainstream cards, from 7.92 percent to 26.4 percent. Cards marketed to consumers with damaged or poor credit had interest rates of more than 30 percent.
Some cards carry fees.
If you plan to pay off your card each month, which is the way to go, you're better off with a card that doesn't carry a fee. The lower the fee, of course, the lower your finance charge, if you do happen to revolve your balance from one month to the next. Most experts say a fixed-rate APR is best because the card company has to notify you before it increases your interest rate. But some experts sasy that with the lowering of the prime rate, there are better deals now with a variable-rate card, which goes up or down with the prime rate. The other interest If you read the legalese that card companies are required to tell you on the back of the offer, you probably already know that credit cards carry more than one interest rate.