When choosing a credit card, we must take into account not only the benefits offered by the bank to obtain, but also the payment terms and commitments to be assumed. The evaluation of these aspects is what will allow you to choose the card that best suits your possibilities and requirements.

In this sense, it is best to carefully read the product features that caught our attention, to avoid surprises of any kind that can affect your financial future or your savings later. If you have any questions or want to know something in particular, reading the terms will clarify your doubts immediately.

Usually when we are interested in a card we find terms that are not so easy to understand, but we miss and forget that these are going to  influence our balance directly. So, we bring you a list of important concepts, this way you’ll be prepared for that important moment:

Annual Percentage Rate (APR) or Annual Percentage Rate (APR): if you do not pay the balance on time that you have accumulated at the end of the month, the bank will charge you this interest rate. Obviously, you always have to make the payment on date to keep the debt from an unexpected increase.

At this point we must be very careful, because sometimes the initial proposal includes low introductory rates and subsequently the percentage is much higher.

Commissions (fees) varies according to the bank. Of course, we should not ignore that these will affect our balance. They are divided into the following categories:

-Annual Commission: the charge made for using the card annually. Sometimes, there is no charge.

-Commission by application: the amount of money you must cancel by sending the application for the card.

-Commission for exceeding the limit: This is a fee that you must pay if you exceed your credit limit, including commissions charged to the account and purchases.

-Commission for delay: must be canceled when you do not pay your balance on time.

-Penalty rates: applies if your payment is not made on time or has a payment return.

Credit limit is the maximum amount you can spend with your credit card.

Grace Period is the time you have to pay your card balance before any interest applied for late payment.

With this information, you can make an informed decision about the type of credit card you should choose.