Credit Cards and You: Getting the Most from Your Credit Card

Understanding Low Introductory Rates

Credit card issuers frequently offer an attractive introductory interest rate on newly issued cards, or on balance transfers to your existing card. If you tend to carry a balance on a credit card, this kind of offer may save you money.

However, you should realize that these low rates generally apply for a limited time only. As soon as the introductory period ends, the rate increases to the card's regular rate. To find out what the regular rate is, ask the issuer or refer to the comparison tables.

Before applying for an introductory offer, make sure you understand its terms and conditions. Ask the credit card issuer:

• what types of transactions the introductory rate applies to;
• when the introductory period will end;
• what the interest rate will be after the introductory period ends;
• whether the introductory rate will end if you make a late payment or go over your card's credit limit;
• what the order of transactions is and how your payment will be applied; and
• whether any other fees or conditions apply.

Don't base your credit card decision solely on one factor such as an attractive introductory rate. Make sure you understand all the features and conditions of a card before you accept it.