Choosing a Credit Card

Factors to Consider

Chances are your mailbox is filled with various credit card offers, each promising to be the "perfect" card for you. But before choosing a card, take a few minutes to carefully consider whether that card actually meets your needs.

Read the fine print

Make sure you understand the terms and conditions of any offer.

Interest rate

If you plan to keep a high balance, shop for the card with a low annual percentage rate (APR). As a trade-off you may have to pay a higher annual fee.

Always check if a low rate is part of an introductory offer. If so, issuers may raise the rates considerably after the introductory period.

The 18 percent interest rate cap on credit card accounts was recently repealed, so consumer credit companies may charge any interest rate they wish.

Annual fee

If you pay off your balance every month, look for a plan with a low or no annual fee. The interest rate is not a factor because your account won't be accruing interest.

Grace period

While many credit cards issuers give you 25 days to pay any new balance without incurring interest, some do not. This means you will be charged interest from the moment of purchase, regardless of whether or not you pay the entire new balance on your bill. There are many other factors involved in choosing a credit card. Some issuers offer cash back programs, free rental vehicle insurance, or other incentives to use their card. Examine the offer carefully and choose the card tailored to your needs.

Dealing with a financial institution located within Wisconsin assures you the institution is subject to Wisconsin laws.

Wisconsin law limits:

Wisconsin law does not limit the amount of any credit card charges or fees, such as finance charges, late fees, over-the-limit fees, annual fees, NSF fees and cash advance fees.