Which credit card is the best deal?

The marketing departments of credit card companies are paid to make their deal look like it is the best for you, but is it really?

What you need to consider for depends on how you'll use the card. If you plan to pay off the balance each month and won't incur any finance charges, a low interest rate is less important than finding a card with no annual fee, no or small transaction fees and a long grace period. If you'll carry a balance, you'll need to select a low interest rate and a balance calculation method that minimizes your finance charges.

All credit cards will cost you money to use, but depending on the terms and conditions, some are more expensive than others. When checking out a credit card offer, consider these factors:

Interest rate. It’s important to know how an interest rate is calculated. A fixed rate will stay the same over time, but a variable interest will rise with the prime rate. It can be low today but rise every month. Be sure to determine what the interest rates are for different charges, such as balance transfers, cash advances and purchases.

Finance charge. How is the outstanding balance calculated to determine the finance charge? Be sure to know how many days in the billing cycle you have to pay off the balance before you are hit with a finance charge

Annual fee. Some cards charge an annual fee, which you may or may not be willing to pay. If the card has a lower interest than other others, it may be worth it.

Other fees. Even if you always pay your bills on time, be sure to find out about the card’s late fees, over-limit fees and any other penalties you may incur when using the card.

Be sure to read the fine print. Credit card companies must disclose interest rates and fees, but some fees are buried in your user agreement.