To make sure you’re choosing the right card and making smart choices, it’s important to understand the mechanics of how they work. Here are five things everyone should know about their credit card.

  1. Your payment date: You don’t want to pay interest, so make sure you pay off your card before they charge you.
  2. How long your payment takes to be processed: If you submit for payment on Monday, does it take until Thursday to pay? If there’s a delay, make sure to factor that into when you pay so it’s not late.
  3. APR: This is the interest rate you’ll pay if you carry a balance into the next month. Typically, you’ll find APR’s for credit cards anywhere from 14-21%. You don’t want to pay interest ever, however if you do, you want to make sure it’s as low a rate as possible.
  4. The Annual Fee: Some cards come with an annual fee while others don’t. When you’re weighing out cards, this might influence your choice. For example, if you get a free plane ticket once a year but the annual fee is $100, that “free” ticket might not be as attractive because you’re essentially paying for it.
  5. Understand the Introductory Terms: Sometimes credit cards offer 0% interest for a certain period, or they offer no annual fee the first year, or certain perks in year one, it’s important to know if any of these terms will change in time. People either don’t find out or they get lazy and go on auto pilot after they have the card. Maybe it makes sense for you to open a card and close it after a couple of years due to the terms. Go in with a plan in place.

Have a question about the best credit card for you? Chat with a WECU team member today.