Obtaining credit is a big step. Make sure you understand what you’re signing up for. Look at the following:

Interest Rates: Be smart; shop for the lowest interest rate you can find. Check a website such as bankrate.com to see what interest rates are at, and then look for a card on the low end. (This business is very competitive, so you should be able to find one pretty easily.) Also look to see if the card has a fixed or variable rate, as variable rates may frequently increase.

Late Payment Penalties: If you’re ever late, you’ll find out that late payment fees can be really high. Choose a card with a lower fee if you tend to be forgetful. (A
good way to avoid late fees is to sign up for automatic bill payment from your credit union account.

Introductory Offers: Some credit cards charge little or no interest for the first six months to one year, but after that the rates go up. Read the terms of the credit card
carefully so you know what the rates will be after that time. Regular rates can be a real surprise.

Annual Fees: If the card has a fee, check out the reason for it. Does the card offer benefits, such as store discounts or travel rewards? If you don’t need the benefits offered, pick a card with no annual fee.

“Hidden” Charges: Some cards have minimum finance charges. Others charge you interest on the past two billing cycles each month. Be on guard, so there are no
surprises.

Grace Period: This is the amount of time you have to pay off your balance in full before interest begins to accrue. Remember, there is no grace period on cash advances or if you’re already carrying a balance from the month before. Be sure to check out your credit union when considering your first credit card.

Our rates and fees are usually well below those offered at other financial institutions. We welcome you to apply now.

Yes, it’s good to have a credit card.

• It can help establish credit history.
• It’s safer and more convenient than carrying cash.

But not if you don’t pick the right one. With bad account management:

• It can cost you thousands in interest.
• It can ruin your credit rating for several years.

Think of what better things you could use your money for than paying several times over for something you already own. Remember that minimum payments are just that. In many cases, if you just pay the minimum every month it will take you years to repay your debt. And the longer it takes, the more interest you’ll pay. Each month, pay as much as you can on your card. Read on to learn how to find a card actually worth the ink on the application.

It’s all in black and white

All credit card ads with applications are required by law to feature a Schumer Table or “Fed Box” that looks like the one below.This way it’s easy to pick out the pertinent information and compare several offers side by side.