Too many people have too many credit cards when there is really only a need for one or possibly two.

If you have 7-8 Credit Cards the only thing to do is cut them up but don’t do it just and here’s why.

It is so easy to overlook the backs of credit card statements and not be aware of your interest rate charges and changes.

Sometimes there are messages that directly concern your APR and people are either too busy or not aware of how the credit card companies increase their charges.

For example, with the new laws coming into effect early in 2010, Credit Card companies have changed most cardholders agreements and gone from fixed rate annual percentage rate to variable I’m sure you got a notice in the mail informing you of immediate changes to your account..

Basically, what this means is higher charges in the long term.

Here’s what to do, take a weekend day with your husband or wife and get all your statements together and sit down at the table and go over all these statements one by one.

What you need to look at are, the backs of the statements, where all the details are. There are several things you need to look for, which I will put in priority.

# 1 Annual Percentage Rate or (APR)

# 2 Fixed Interest vs Variable Interest Rate ( You Will Need Fixed Interest Rate)

# 3 Grace Period

# 4 Annual Fee

# 5 Minimum Finance Charge

# 6 Method Of Computing Balance

# 7 Transaction Charges

# 8 Cash Advance Fees

The annual percentage rate is the amount you are charged in interest on a monthly level. The lower this rate is, the lower your monthly fee is.

Fixed Interest is the best possible rate to have, this will keep your monthly payments at a manageable level and will not go up or down. The variable rate will fluctuate. This variable rate can increase in a matter of months in some cases 1%- 5% which will make your monthly payments much higher.

The Grace Period is the amount of time the Credit Card companies allows you, before you start paying interest charges, this period ranges from 20 – 30 Days. So, if you can pay off a good chunk you will avoid heavy interest charges and debt consolidation.

Annual Fee is what the Credit Card company charges every year. Its best to avoid this if you can.

Minimum Finance Charges is what the Credit Card companies charges you for the privilege of doing business with them. You will be charged this fee even if you don’t use your card any particular month.

The method of computing your balance is on a daily basis, all the more reason your try for a fixed interest rate.

Transaction Charges are taken every time you use your card. These charges vary depending on what service you use.

Cash Advance Fees are charged at a significantly higher rate and can vary, depending on amount. Sometimes these rates can be as high as 7% -10%. This is on top of your regular interest rate, whether it be Fixed or Variable.

So, in a nutshell, when searching for a Credit Card from a reputable Credit Card company here’s what you should look for.

A Fixed Interest, No Annual Fee, with a Grace Period of 20 Days or less Finance Charges of $1 or none..

There are other charges of coarse, life overdrawn fees, insufficient funds fee. Remember your Credit Score will determine what rates you get but there is so much competition between the Credit Card companies that you can negotiate the best rate for you. If you don’t like the answers you get, move on to the next company and shop around to get what you need.

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Filed under: Credit Card Relief