Understanding all the features of a card will help you figure out which one is the best deal.

When you open your inbox that first thing that you notice is that you have several emails containing credit card offers (If your Spam filter isn’t working).

The fact is, lots of credit card offers that you get in the mail or see on TV entice you into believing that it’s the perfect credit card for you.

However, it’s important that you undertand every feature about the card before you jump in and sign the contract. There’s often small print that can end up coming back to bite you.

The features that the card offer claims may not be the features that you end up receiving. It’s important that you understand that there are a lot of aspects to credit cards that you need to be aware of before you sign the contract.

Let’s take a look at a few:

Hidden Fees

Every credit card company will at somne point charge fees. It’s inevitable. The fees can be for just about anything so it is important that you read the fine print very carefully.

Often, you will find that there are many hidden fees that you do not know about until you see them on your statement.

Annual Fees

Almost every credit card company these days does not charge an annual fee. However, if you have poor credit, or are just starting out, or rebuilding your credit, you may be charged an annual fee whether you use the card or not.

You may be offered an introductory special where there are no annual fees for the first year, and after that year you will be charged.

Find a Credit Card with No Annual Fee

Balance Transfer Fees

When you apply for a 0% or low interest balance transfer card, the comapny will usually charge you a 3% fee or $75 whichever they determine. You need to find out how much it is because if the fee is big enough it might not be worth transferring the balance.

Find the best 0% Balance Transfer Credit Cards here

Cash Advance Fees

Cash advances are a feature that all credit cards offer. However, many credit card companies will charge you a fee for using this feature. The fee for using the cash advance feature is usually high, and you will be charged an even higher rate in interest for the advanced amount.

The interest starts to accrue when you receive the funds. Credit card companies have to disclose this to the consumer; however, it is usually hidden in the fine print of the contract.

Avoid taking Cash Advances at all costs.

Miscellaneous Fees

it’s important to understand that if you are late with a payment or if you go over your credit limit, you will be charged a fee. This fee will accrue as long as you have an outstanding balance.

It is always recommended that you pay your balances every month to avoid these fees. If you are unable to pay it off, then try to pay something toward the balance each week until it is paid off.

Incentives and Rewards

To offset all of the fees, credit card companies often offer incentives to their customers. This incentive can be anything from cash back on purchases, to warranties on purchases made with their credit card.

Find the Best Reward Credit Cards

If you use your card often, then the incentives could add up quickly.

Rewards are also offered to credit card holders as a way of thanking you for your business. These rewards can be anything however they are usually in the form of points that accrue to make purchases anywhere.