There’s no shortage of credit cards these days, and the options they come with seem endless. You’ve got cash back options, travel and merchandise rewards, introductory interest rates and more. Before deciding which one – if any – is right for you, here are some things to look for.

1. Interest Rates

Most people never look at the interest rate before applying for a credit card. They get so caught up in the special offers that they forget those offers eventually end. Introductory rates and balance transfer offers are great to take advantage of, but what you really need to understand is what the rate will be when the special rates expire.

 Currently, the national average credit card rate is about 23% APR. That’s a really high rate for borrowing money, and that’s just average rate. That means many cards have even higher interest rates.

 Let’s say you charge $1,000 to your card, and you pay $100 a month at 23% interest. It will take you 12 months to pay off the balance, and the total interest you’ll pay over 12 months is more than $120.

 For comparison, Allied FCU’s credit card rates range from 9.90% APR to 14.90% APR. At 9.90% APR, that same $1,000 will take you 11 months to pay, and your total interest will be about $48. Interest rates matter.

2. Rewards

Reward earning credit cards aren’t always as rewarding as they may seem. Sure, it’s great to earn travel miles or cash back on your purchases, but how much is that costing you? Before deciding on a reward credit card, compare the rate on that card to the credit card company’s standard card. If it’s higher, and you carry a balance on your card pretty regularly, you’re paying for those rewards with a higher interest rate. If the card has an annual fee, you are also paying for those rewards That doesn’t mean you shouldn’t get a reward card. There are great programs out there. You just have to weigh how big the rewards are compared to how much you are spending to to gain those rewards.

3. Late Fees

Late payments come with late fees. You probably won’t find a card without them, and hopefully, you don’t plan to make late payments. That being said, sometimes life happens, and we sometimes miss the payment date by a day or two. Some questions to ask:

·      How does the credit card company treat late payments? Are they assessed the first day your payment is late, or is there a grace period? Some credit cards actually charge late fees if your payment is not received by a specific time on the due date, like 5 p.m. Be very careful before choosing a card.

·      What is the late fee? Most are at least $25 and often more than that. It’s also worth noting that you are paying interest on your late fee if you carry balance on your card, because it gets added to the balance you owe.

Borrowing money costs money. Be smart about how you choose your next credit card and how you use your next credit card. For a better card, with great rewards and lower interest rates, apply today for an Allied FCU credit card.