Before you apply for a card, carefully look at the literature, and the terms and conditions. Here is a checklist of considerations that you should have answered for each credit card you are considering:

• Introductory rate. This is a very important consideration. Does the card offer an introductory rate? What is it? While there are still some 0% APR credit cards out there, the instance of intro rates of 1.99% and 3.99% is increasing. You should also find out how long the introductory period lasts. The longer the intro period the better. Cards offer anywhere from six months to 18 months in intro rates. Another thing to think about with regard to the intro rate is what the rate applies to. Some cards have a separate intro rate for purchases and a separate rate for balance transfers.
• Long-term interest rate. The next thing to look at is what the long-term interest rate will be after the introductory period is over. Most cards list three different rates, and the rate you get depends on your credit history and your account standing. Also, you should find out if the long-term interest rate on the credit card is fixed or variable. Chances are that it will be variable, but you might get lucky and find one that is fixed.
• Default interest rate. Most credit cards have a default interest rate. This can be anywhere from 29.99% to 34.99%. The default interest rate is an ultra-high rate that some credit card companies charge you if you miss a payment or are late – or even if you go over the limit. Check the credit cards to see whether they have a default rate, and how high it is.
• Annual fee. In recent years, few credit cards charged an annual fee. Now, however, the practice is coming back, especially amongst credit cards meant for those with poor credit. The annual fee can be anything from $25 to $75, charged once a year and added to your credit card balance. Try to avoid cards with an annual fee. If you do apply for a card with annual fee, ask if the credit card company will waive the fee for the first year.
• Grace period. Many credit cards offer a 20 day grace period. Others have shorter grace periods. This is the time before interest charges are applied to purchases. Some credit card companies charge interest the same day the purchase is made. It is important to find out how interest will be charged.
• Fees. There are a number of fees that are charged by credit card companies. Some of these include: over the limit fees, late payment fees, missed payment fees and balance transfer fees. You should find out what these fees are (usually between $39 and $45) before applying for a credit card. Additionally, pay attention to cash advance and balance transfer fees, since these are usually expressed as a percentage of the transaction. Find out whether a balance transfer fee is charged when you transfer balances upon opening a new account. Some companies will waive the balance transfer fee if you make the transfer when you apply.
• Type of billing. What sort of billing does the credit card company use with regard to your card? Two-cycle billing is a controversial practice that includes the balance from a previous month's cycle, so even if you are zero in one month, you can still be charged interest. Find out whether the average daily balance method is used, or whether the end of cycle method is used. This can make a big difference in what you pay in interest charges.

It is important to remember to apply only for one card. This is why comparison shopping is so important. If you apply for a lot of cards at once, it can severely damage your credit score and cause problems when it comes to approving you. Also, keep in mind that the credit limit that may be advertised by the company is probably not the credit limit you will get. Most people qualify for a much lower limit than they think they will get. It is vital that you do your homework before you apply for a card, and apply for the one that is best suited to your needs.