Credit cards are convenient, but you can pay a price for that convenience if you're not aware of the fees companies tack on. You also need to pay attention to the interest rate on your card and what protection the card company offers you against fraud. Here are four things to be on the lookout for when applying for a card:
Annual fees. These charges can run up to $20 for the run-of-the-mill Visa or MasterCard, and up to several hundred dollars for premium airline rewards cards. As the credit card business has grown more competitive, card issuers have shown a willingness to drop the annual fee for customers they'd like to keep. If you think your fee is too high, ask to have it waived.
Interest rates. Interest rates are set by the bank or savings and loan that issues your credit card, not by the card company. Issuers have to stay under the interest limits set by the state in which their headquarters are chartered. But that's rarely much comfort because the limits are often 13% to 16%, or more. Introductory rates, which may last six months or a year, are often lower.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Other fees and charges. You will be charged interest on cash advances, a fee for paying late, and possibly a fee for exceeding your credit limit.
Protection against fraud. Plastic credit is pretty safe. If your card or your card number is used fraudulently by someone else, the law limits your liability to $50, and issuing banks often don't make customers pay even that much. If your account is used fraudulently to charge something without actually showing the card-say, if someone orders merchandise over the phone or online-you owe nothing. All this is provided you report the fraud within 60 days of the date of the statement on which it appears.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Original Medicare vs Medicare Advantage Quiz: Which is Right for You?Quiz Take this quick quiz to discover your "Medicare Personality Type" and learn whether you are a Traditionalist, or a Bundler.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
-
Big Changes Are Ahead for Higher EdThe Kiplinger Letter A major reform of higher ed is underway. Colleges are bracing for abrupt change, financial headwinds and uncertainty.
-
What New Tariffs Mean for Car ShoppersThe Kiplinger Letter Car deals are growing scarcer. Meanwhile, tax credits for EVs are on the way out, but tax breaks for car loans are coming.
-
AI’s Rapid Rise Sparks New Cyber ThreatsThe Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
-
Blue Collar Workers Add AI to Their ToolboxesThe Kiplinger Letter AI can’t fix a leak or install lighting, but more and more tradespeople are adopting artificial intelligence for back-office work and other tasks.
-
AI Goes To SchoolThe Kiplinger Letter Artificial intelligence is rapidly heading to K-12 classrooms nationwide. Expect tech companies to cash in on the fast-emerging trend.
-
What To Know if You’re in the Market for a New Car This YearThe Kiplinger Letter Buying a new car will get a little easier, but don’t expect many deals.
-
Will Lower Mortgage Rates Bring Relief to the Housing Market?The Kiplinger Letter As mortgage rates slowly come down here's what to expect in the housing market over the next year or so.
