by Bobby Coles

Created on: October 22, 2010   Last Updated: May 02, 2012

To be a smart consumer, you have to be cognizant of the sneaky tactics employed by the credit card conglomerates. Credit card companies spend lots of money trying to figure out what types of offers to make that will help them fill their own personal coffers with your hard earned cash.

When you are comparing credit cards, there are a few items that you need to keep your eye upon. While interest rates are the carrot dangling in front of the camel, you must also watch the available credit limit, the rewards options with different cards, and those hidden fees that can wreak havoc with your personal financial situation.

You should look for an interest rate that is fixed when you are shopping around for credit cards. Many credit cards offer forth elaborate introductory offers that are ludicrously low, but in reality, they will skyrocket to their desired rate within a very short amount of time, or even sooner if you miss a payment or make a payment late.

This is where you need to exercise extreme caution. It is the interest charges that will eventually be your undoing. While you will probably run up more debt than you could possibly imagine, it is the interest rate that will ultimately determine how deep into the quagmire of debt you actually sink.

With the available credit limit, it is in your best interest to keep a cautious eye on the amount. A large limit may lead you to some rash and impulsive purchases, but may also give you a sense of security and freedom. A small limit by cause you to max out your credit card too easily, and leave you without a safe feeling in emergency situations.

The other major factor with the available limit is that the credit bureau utilizes your debt to income ratio to partly determine your credit score rating, so you do require an available credit limit that will suit your financial situation the best.

Rewards options are a very tempting method of luring you into their den of deceit, and the credit card companies offer many different rewards programs designed to offer you some satisfaction. When you are looking for a credit card, you should compare rewards programs.

Depending on how often you plan on using your credit card, and if you will use it enough to make the most of the rewards, then it may be a perfect fit. Do a lot of research on the rewards, and find out if any of them are a viable fit for you.

As you compare credit cards, it is essential that you look for all of the hidden fees in the fine print of your agreement. Credit card companies love to sneak little tidbits of doom into the fine print, hoping that you will not scour the information that closely.

Unless you want to be saddled with fluctuation interest rates, and a credit rating that is constantly sagging, then you should do all of the research possible, and use a fine tooth comb before you sign on the dotted line.

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