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| Searching for the Best Credit Cards |  It's quite possible to get good deals and advantageous terms
Nowadays credit card owners are more likely to live fast, max-out young and leave a terrible-looking balance behind than ever before. This causes a far bigger dent in their creditworthiness than it used to, since credit card companies are now turning down applicants in record numbers.
The classic credit card maxim still holds true: those who have a monthly balance should look for the lowest annual percentage rate (APB), while those who don't should find cards with the lowest (or no) annual fee. But credit card companies are getting more sophisticated at the art of taking those couple of extra dollars out of you each month, according to industry sources who follow credit cards.
According to a recent investigation by Bankrate.com, a financial advice Website, Wachovia Bank Card Services of New Castle, Delaware, proposes the best overall deal, with an APB of 7.75%, an annual fee of $88 and a grace period of 20 days before it starts charging interest.
Credit card finders who usually wipe their debt slate clean every month would be better off with the Richmond, Virginia-based Capital One Bank card, which has no annual fee and takes from you a 9.9% APB on your balance. Capital One's 25 interest-free days can become useful when you're stretched thin, too. Although credit card’s interest-free period lasts for only 20 days, Wachovia also proposes a similar card tailored to this market, with the same APB and no annual fee.
If you've already snipped up your old card and want to send away for one with a better deal, industry experts like Consumer Action, an advocacy group in San Francisco, advise buyers to be careful with some common stumbling blocks. Try to pay your bills on time, if you are tempted to sign up for a card with a suspiciously low introductory rate. If you're late, some credit card issuers will deduct from you their standard APB and may also add on a higher-than-usual late fee.
Retail store cards often come with substantial introductory discounts, therefore they are also a great temptation for shoppers. It is advisable to get a retailer's card for those who have poor or no credit. Usually, retailers are a little more tolerant than other issuers," says Linda Sherry, a spokesperson for Consumer Action. She emphasizes that other cardholders should be careful with the high APRs that department stores usually charge on their cards, and says that the discounts are often eaten up by the high APRs and late fees tacked on to card bills by retailers.
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