While choosing a credit card for yourself, thoroughly examine the costs and terms associated with it and compare it with similar other options that are available in the market. You must understand all the terms of the contract so as to be sure “how much you will pay for the privilege of borrowing”

In today’s competitive credit card market place, customers can gain advantages from various complementary services that are offered by credit card issuing companies. As a result of stiff competition, many credit card providers are extending no annual fees, 0% interest deals, bonus points etc. Although these offers are attractive, they can often lead people to select a card that doesn't best suit their specific needs. Also be smart to calculate different options like low interest credit card with a long term balance transfer offer may be a better deal than a credit card that comes along with a 9 month 0% offer on all balance transfers

While evaluating different credit cards in the market, you should first acquire the basic information of the card and than see if that can is a suitable option for your situation. Some of the important components that you must inquire about are:

Annual Percentage Rate: Annual Percentage Rate (APR) is a measure of the cost of credit, expressed as a yearly rate.

Variable Rate: “Variable rate” plans are link with index performance and allow the issuer change your ARP in accordance with interest rates and economic indexes.

Fixed Rate:"Fixed Rate" plans remain fixed at level indicated at the time of opening the account and are not subject to variations adjustment like variable rates.

Grace or Free Period : It is a time period that lets you avoid finance charges by paying your balance in full before the due date

Annual Fee: An annual membership or participation fees that the card issuing company may charge. Nowadays many companies offer credit card facilities with no Annual charges.

Transaction fee and Other Charges: Some insurer’s charge a fee if you use the card to get a cash advance, makes a late payment, or exceeds your credit limit.

Balance Computation Method: Mechanism used by the issuer to calculate your finance charges.