2. Know what to
compare
APR Sometimes a credit card
offer lists several rates or a range
of rates, and you won’t know the
rate you’ll get until after you’re
approved. Would you still want
the card if you had to pay the
higher advertised rates?
Fees Compare the fees listed
for each card. Common fees
include a cash advance fee, a late-
payment fee, and for some cards,
an annual fee.
APR for balance transfers If you
plan to transfer your balance from
one card to another, compare the
interest rate you are paying now
with the rate you’ll pay on the
new card after the introductory
rate, plus any balance transfer fee.
Penalty APR Check for a penalty
APR. The offer must tell you what
the penalty rate is, what triggers
it, and how long it would last.
3. Shop around and
ask for better deals
Start your search for a new card
at your bank or credit union. Your
existing relationship may qualify
you for a better offer.
If you have a credit card and
are happy with your service but
think you’re paying too much
in interest and fees, then ask
the issuer to match or beat
the terms and rate on the new
card you’re considering.
Next, compare the offers with
others you’ve received at home or
have seen online.
Only apply for the credit you
need. Applying for too many
cards over a short period can
lower your credit scores.
4. Transfer your
account with care
Most credit cards charge a fee
to transfer your balance. So
even though a zero percent
interest rate on balance transfers
may sound appealing, it may
not be free. Some credit card
companies charge a one-time
fee of 3 to 5 percent of the
balance you’re transferring.
When you move your account,
don’t close your old account right
away. Continue to make at least
the minimum payment while
you’re waiting for the balance to
transfer to the new card.
If you transfer your balance to
a new card, and you feel you’ve
made a mistake after reviewing
your disclosures, you can
generally change your mind if
you act within 10 days after the
credit card company sends your
account opening disclosures.
Contact the credit card company
as soon as possible if you think
you’ve made a mistake.
Learn more at consumerfinance.gov
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