When looking for a credit card it is important to understand the various terms related to credit cards. Below are some of the most common terms you will come across when searching for a credit card. By understanding these terms you can better compare credit card offers and determine which is the better offer.

Annual Fee: Many banks or card issuers may charge a annual membership fee for their credit cards. The fee may range from $25 to over a $100 depending on the card. There are also many cards out there that no have no annual fee!

Annual Percentage Rate: Often referred as the "APR", this shows how much credit will cost you on a yearly basis. The lower the rate the less you will pay on interest charges. There are two types of APR:

1. Variable APR: A variable annual percentage rate allows credit card issuers to change your APR based on fluctuations in indexes such as the prime rate.

2. Fixed APR: A fixed annual percentage rate is not subject to adjustment based on indexes like the variable rate. But beware that credit card issuers reserve the right to change the your rate at anytime.