High interest rate credit cards are the bane of borrowers everywhere. But even if you find a credit card with a lower than average interest rate, you aren’t in the clearing just yet. You will still have to review terms that could still potentially make a lower interest rate card less appealing than a higher rate card.

Credit card companies will offer you a grace period, in which they allow you to get as little as 0% in interest for a certain period of time. This grace period is quite attractive, especially for credit card balance transfers. But don’t get too hasty just yet; credit card rates might jump up much higher than normal after this grace period is through.

Creditors are smart in applying fees that don’t always get the attention of applicants. The annual fee is a great example, although it isn’t commonly seen much anymore. Credit cards that have an annual fee will cost the owner anywhere from a few dollars to well over $60 each year. It’s unfortunate to be charged this fee when you don’t have any debt to your name and have remained financially responsible.

Accidents happen- you won’t be an exception. If you can’t make a payment one month, you will be assigned a penalty by your credit company. It’s good to sign onto a credit company that understand that accidents and other “hiccups” will happen along the way, and that a high penalty would be a little atypical. If you’re lucky, you’ll find a company with no penalty at all!

When credit cards aren’t being used, the credit company in which they belong to may charge you a fee. It seems ridiculous, but it’s true. If you don’t have a minimum account balance on your credit card at a specific point in the pay period, a number of credit card companies will actively apply a penalty as a result. That way a credit card is always making the parent company money, regardless if you are in debt or not.

Remember that nice interest rate you were promised? Credit companies can take it away with even one slip up. Credit companies have the right to raise interest rates as they see fit, so long as it is stated in the contract. There should be a sense of control in the limbo that this creates, so inquire as to what penalties would be applied before obtaining a credit card.

Final Thoughts

A contract is a binding legal document that will be enforced- whether you like it or not. Keep that in mind when you sign the dotted line for a credit card application, and all the while look out for disguised fees.

Learn more about compare credit cards and low apr credit card guide.