Credit Cards: Read the Fine Print
Credit card offers can be confusing. Be sure you understand the terms before you sign on.

efore you sign up for a credit card, carefully review all of the terms and conditions. Then make sure you know the answer to these three questions:

Is the annual percentage rate (APR) fixed or variable? The APR is the total cost of credit on an annual basis. Issuers must disclose the APR when you apply for the card and note it somewhere on each bill. Most credit cards today have a variable interest rate, and the issuer must tell you what financial indicator or “index” it is using as the basis for the rate. The issuer must also tell you how much and how often your rate will change. If you see a card advertising a too-good-to-be-true teaser rate, be careful. It could soar up as much as 10 points in just a few months.

What types of fees does the card charge? Many bank-card issuers charge an annual fee of $25 to $50 for standard cards and $75 on up for premium gold or platinum cards. Most issuers also charge a fee when you make a late payment, exceed your credit limit or take out a cash advance. Some charge a flat monthly fee whether you use the card or not.

What's the grace or “free” period before interest is charged? Issuers typically give you a grace period of 20 to 30 days for a new purchase before interest begins to accrue. However, if the credit card doesn't offer a grace period, if you carry over a monthly balance or if you take a cash advance, you're usually charged interest immediately.

Navy Federal's credit cards have low fixed interest rates; no annual fee on Visa Classic, Standard MasterCard® or Visa and MasterCard Gold(competitive annual fee of $49 on TravelValue® Visa); and a 25-day grace period on all purchases. Current interest rates are listed on page 5. To apply, visit www.navyfcu.org or call 1-800-336-3333.