Tips for Opening Credit CardsI probably receive one or two credit card offers per week in the mail, and typically just shred and recycle them. Recently, though, I've been considering getting an additional card. To really understand these offers (and determine if they're too good to be true), I turned to the Federal Reserve for help.
What I learned to look for:
This is the Annual Percentage Rate i.e. the interest (also called the "finance charge") that you'll be charged if you don't pay your bill in full every month. Some cards will waive this fee for six or 12 months as part of an introductory offer.
What they don't tell you: Offers don't list the average going rate for all credit cards, so you don't have any context for whether the offered interest rate is a fair deal. See bankrate.com, which updates these rates regularly.
2. Balance calculation method
This is how the credit card issuer determines the balance on your card, upon