(MONEY Magazine) – Trying to decide whether to apply for the new AT&T Universal credit card? The first question to answer: Do you pay your credit-card bills in full every month? If you don't, forget the AT&T card, with its high 18.9% interest rate. Instead, check out our table at left of low-rate, no-fee cards with useful enhancements. But if you're among the 30% of card-carrying consumers who don't finance their purchases, the AT&T card has much to offer -- and may bring some welcome competition to the industry that will benefit all cardholders. Issued through the Universal Bank of Columbus, Ga., the AT&T card comes with a potent package of come-ons in both MasterCard and Visa versions, including Visa Gold. (For an application, call 800-662-7759.) Foremost is a guarantee of no annual fee to those who sign up in 1990 and charge at least one purchase a year. In addition, the card provides rental-car insurance, extended warranty and 90-day purchase protection -- plus a 10% discount on AT&T long-distance calls billed to the card. If you do a lot of long-distance calling, that last feature could turn out to be the most valuable. Indeed, AT&T's thrust into the plastic jungle is aimed as much at its long-distance rivals MCI and Sprint as it is at big bank- card issuers like Citicorp. Generally, MCI and Sprint are careful to price their rates slightly under AT&T's. But the 10% discount all but erases that advantage in most cases. So far, MCI and Sprint have not announced their response to AT&T's card tricks.

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