Don't Be Surprised by the Costs of Credit

Any credit card that allows a balance to be carried from month to month has an annual percentage rate (APR). The APR is a measure of the total yearly cost of credit (interest plus other charges). The periodic rate is the rate applied to your account balance to determine your finance charge for each billing period. Many cards also charge an annual membership fee that can range from $25 to $50, or more for gold, platinum and other "premium" cards. There will also be other fees for taking cash advances, making late payments and exceeding your credit limit.