1. Interest Fixed vs. Variable

2. Stop and think about your options: Review your credit report and score and research what credit cards are available to someone with your credit score and credit history.

3. Do the Research! www.Bankrate.com lets you compare credit cards and learn what kind of interest rates are available. Compare and consider ALL of the following:  annual fees,  late fees,  the interest rate that will be charged after the introductory rate has expired,  any available perks, such as airline miles, reward points or cash back.

4. Fixed Rate The rate a credit card company charges that does not change. It stays the same each month. The rate can change but the customer must be given 30 days notice in writing. The customer can refuse to accept the new rate. However, the credit card company will close the account. The account will be charged the previous rate until the balance is paid off. Yet, no more charges can be made to the card. If the new rate is accepted, it will only apply to new charges. The existing balance will still be charged the old rate.

5. Variable Rate The credit card company can change the interest rate at any time without notice. It is tied to the general rise and fall of the prime rate. It tends to rise quickly but fall very slowly. Cards with this rate should be used sparingly. A large balance at the time a rate rises can cause big financial headaches.

6. The Prime Rate The U.S. Prime Rate as published by the Wall Street Journal Follows inflation rates. Since the prime rate can fluctate greatly, most variable rates have contractual minimums and maximums to protect consumers.

7. Apply Apply online only IF you feel the site is secure and your privacy is protected. You can mail a credit card application.

8. When the card arrive be sure to… A credit card should always arrive in an unmarked envelope within a few weeks of your approval. There should be detailed directions for activating you cards. Follow them CAREFULLY!

9. Remember to… Check to make sure that your name is correct. Read all related materials carefully Make a note your billing cycle, important dates, etc. Document and save all important notices, confirmations, etc. in a very safe and secure place for your records.

10. If you are denied Analyze the application and review all of your information for any mistakes. You may even want to order a credit report (first one is free) Review the report for any errors or mistakes and be sure to make corrections Submit the information to the credit bureaus. Order another credit report in 90 days to make sure the errors have been corrected.

11. Summary Your credit card statement must show you the daily rate of interest, the annual rate, and how the interest is applied to the balance. You will find this on the credit card statement along with the due date for your payment. Credit card statements now will show you how long it will take to pay off the current statement balance if only the minimum payment is made as well as how much the total cost will be with interest. It also shows the same information for a payment of minimum payment + $10. It is amazing how much you actually pay for the items you purchase if you do not pay off your credit cards each month.