Most of you get offers for credit cards, that sound like this, re-establish credit with pre-approved credit cards, regardless of credit history, some with low introductory rates and other perks.

Beware of offers for credit that require no application. You must look at the following terms when considering a credit card. If you don’t see them, then ask for them.

APR, or Annual Percentage Rate, is an accepted way to describe the interest rate allowing you to compare various offer’s rates. It is expressed as an annual rate. It must be given before you are obligated to the account. It will also be disclosed on your monthly statements. The lending company must also give you the “periodic rate”. This is the rate that is used on your outstanding balance, and used to calculate the interest charge each month. Some offers have clauses that allow the lending company to change the APR when interest rates or other market indexes change. These offers rates are called variable rate programs.

The interest charges will then go up or down according to the interest rate. If you consider a pre-approved credit card with a variable interest rate the lending company needs to disclose certain information. They need to tell you that the rate may change, and how the rate is determined. This would include the index it follows and their margin that they add to it. They must also tell you have often the rate may change and how much it can change at any given time. Does the card include a grace period? This allows you to avoid finance charges if you pay your entire balance before the due date.

Many lending companies will charge other extra fees. These may include annual fees, monthly fees, etc. Sometimes they include a fee per transaction. The fees can range from $20 to $75 or maybe more. Some may include other costs. Some lenders charge a fee if you use your card for a cash advance, make a late payment, or go over a specified limit. Some will collect a monthly fee even if you don’t use your card.

You want to make a wise choice, so be careful to choose a reputable company with a good offer.

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