Credit card terms can be confusing, but it’s important to be able to evaluate the terms of various cards.  Otherwise, you are just relying on luck to end up with a credit card that has favorable terms.  Many cards have high interest rates and fees, so luck is not on your side when it comes to credit cards.  Here are some tips to help you find the credit card with the best terms.

First of all, beware of any card that offers a 0% APR.  These cards are always introductory rates.  You really have to read through the fine print to find out what the real rate is.  In addition to learning the real rate, you need to find out whether the rate is applied retroactively once the introductory period is over.  For example, many cards issued by retailers have no interest for one year.  That sounds great until your first bill comes after the year is up, and the lender has added one year worth of interest all at once because you did not completely pay off the balance within a year.

Also try to avoid credit cards with variable interest rates.  It is almost always better to know how much your rate will be.  It is impossible to budget if the rate on your credit card fluctuates.  Even if you are good at math, you might have a hard time figuring out how much to budget for your credit card payment from month to month.

Now look at the fees.  No matter which card you choose, there are going to be late fees and over-the-limit fees.  However, some cards also have application fees, annual fees, and processing fees.  All of these fees can add up.  Take them into consideration when determining whether to apply for a card.  Unless you have bad credit, you should be able to find a credit card that doesn’t come with a lot of fees.

Now take a look at the credit limit.  What are they offering as a limit on your card?  If the credit limit is low, you may not be able to get much use out of the card.  On the other hand, if the limit is too high, you might spend more than you really ought to and end up getting buried in debt.

Always read the fine print, even if you need a magnifying glass.  Make sure you understand all of the terms before applying for any credit card, or you may find yourself stuck with a card that costs more than you thought it would.  Take your time and compare several different credit cards before deciding which one to choose.  You’ll be glad you did.