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Each time you open you mail box, you will find a few credit card offers for you. Many of these credit card offers have perks like no introductory rate, cash back on purchases, air miles etc. Before you apply for a credit card, consider the following to get the best out of the credit card offer.

APR - Annual Percentage Rate
The APR is the cost of maintaining a balance on your credit card account, expressed as an annual rate. If you thumb through the fine print, you may be able to read on how much the APR is on the credit card and the APR after the introductory rate is over. Try to select a card with low APR. Some platinum credit cards offer rates as low at 9%. The best places to get a credit card with low APRs are credit unions.

Grace period
The grace period lets you avoid any finance charges as long as you pay the credit card balance in full at the end of each billing cycle. You will find information about the grace period in your credit card offer. An ideal grace period should be at least 25 days though some credit card companies are now reducing it to 20 days. If your credit card has a grace period, you must receive your bill at least two weeks before the due date.

Annual fees
Some of the credit card companies charge annual fees ranging from $20 to $100. Some companies are known to charge several hundred dollars but provide certain member benefits as well. There are some other costs you need to bear in mind like the cash advance fees, late fees, over the limit fees. All these fees can add up fairly quickly and push you over the credit limit.

Computation of finance charges
If you intend to carry a balance, you may want to know how the credit card company will calculate the finance charge
Average daily balance - In this method, your daily balances are added together and then divided by total number of days in the billing cycle to get the average daily balance
Adjusted balance - In this method, your balance is calculated by subtracting payments and credits from the balance at the end of the prior billing period.

Other costs and features to consider
If you intend to pay off your credit card in full, you may want to pay special attention towards annual fees and grace period instead of the APR. Other cards will offer you cash back on your purchases. Infact some credit cards offer you twice the cash back on groceries and gas purchases. Some credit cards offer you miles for your purchases.

Credit card shopping tips
When shopping for credit cards, here are some important tips to consider

• Put your needs first. List down your needs and then shop for the card that suits you the most.
• Before you accept the credit card, make sure you have read and understood the fine print.
• To verify accuracy of credit card bills, hold on to your receipts.
• Always prevent unauthorized charges by drawing a line through blank spaces on charge slips.
• It is always a good idea and a safe practice to make a copy of your credit card and store credit card company contact information in a safe place.

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