Credit Card Advice Corner


Credit Card Management


Tips to manage and improve your credit standing.
  • Live within your means and avoid having to resort to your credit card.
  • Pay your credit card bills on time. Paying your credit card on time builds your credit history and enables you to improve your credit score.
  • Pay more than the minimum credit card payment. Since the minimum payment covers just the interest, your outstanding credit card balance still remains the same. Use this credit card calculator to see the effect of paying the minimum.
  • Pay off credit card accounts with the highest interest rates first.
  • Don't apply for new credit cards too soon.
  • Don't always chase lower credit card rates by transferring credit card balances. There are often fees from both banks involved, meaning you pay twice.
  • Know the terms of your credit card agreement and stick to the terms.
  • Avoid credit card extras. Credit card companies are quick to offer additional services such as credit card registration services, insurance, and credit card loss/theft protection. They cost you money and are often unnecessary.
  • Monitor your crdit card statements carefully. Look for unauthorized credit card charges as well as improper fees.
  • Monitor your credit reports. Obtain at least annually copies of your credit reports from the three credit bureaus and review for errors and discrepancies.

More on Credit Cards from the


Advice Corner

Credit Card Basics

Shopping around for a credit card can save you money on interest and fees. You’ll want to find one with features that match your needs.

  • Understand the features of credit cards

  • Compare credit card features and costs
  • Know your rights when using your credit card
  • File a complaint if you have a problem with your credit card

Choosing a Credit Card



The first step in choosing a credit card is to compare credit card offers from card issuers as well as to think about how you will use it.
  • If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don’t interest you--your best choice may be a credit card that has no annual fee and offers a longer grace period.
  • If you sometimes carry over a credit card balance from month to month, you may be more interested in a credit card that carries a lower interest rate (stated as an annual percentage rate, or APR).
If you expect to use your credit card to get cash advances, you’ll want to look for a credit card that carries a lower APR and lower fees on cash advances. Some credit cards charge a higher APR for cash advances than for purchases.

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Credit Card APRs
The annual percentage rate--APR-- the interest rate you will pay if you carry over a credit card balance, take out a cash advance, or transfer a balance from another credit card. The APR states the interest rate as a yearly rate.

Multiple APRs



A single credit card may have several APRs:
  • One APR for purchases, another for cash advances, and yet another for credit card balance transfers.
  • Tiered APRs - Different rates are applied to different levels of the outstanding credit card balance.
  • A penalty APR - The APR may increase if you are late in making your credit card payments.
  • An introductory APR – A low teaser rate applies during the introductory period after you obtain your credit card -- generally 6 months – followed by a higher rate after the introductory rate expires.

Fixed vs. variable APR

Some credit cards are “fixed rate”--the APR doesn’t change, or at least doesn’t change often. Even the APR on a “fixed rate” credit card can change over time. However, the credit card company must tell you before increasing the fixed APR. Other credit cards are “variable rate”--the APR changes from time to time. The rate is usually tied to another interest rate, such as the prime rate or the Treasury bill rate. If those rates change, the rate on your credit card may change, too.

Credit Card Grace Period


The credit card grace period is the number of days you have to pay your credit card bill in full without triggering a finance charge. For example, the credit card company may say that you have “25 days from the credit card statement date, provided you paid your previous credit card balance in full by the due date.”
The credit card grace period usually applies only to new purchases. Most credit cards do not give a grace period for cash advances and credit card balance transfers. Instead, interest charges start right away.
If you carried over any part of your credit card balance from the preceding month, you may not have a grace period for new purchases. Instead, you may be charged interest as soon as you make a credit card purchase.

Credit Card Finance charge

. The finance charge - let our Finance calculator help you make the right decision - is the dollar amount you pay to use credit card. The amount depends in part on your outstanding credit card balance and the APR.

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