WINNING THE CREDIT-CARD GAME 

Some banks are eliminating the standard 25 or 30-day grace period within 
which you may pay your bill within being charged interest. This is the normal 
grace period before interest kicks in. But this is slowly changing. For 
example, some banks are offering extremely low fixed rates, but without a 
grace period. These cards will charge you interest from the date it processes 
your charge slip.

If you usually pay your bills in full within the normal grace period, it is 
best you avoid no-grace-period cards. The 25 or 30-day grace period is more 
financially significant for you than a lower interest rate. However, if you 
carry a balance each month, you're better off with a lower interest rate. In 
this case, a lower interest rate can save you more money than a grace period 
would.

Most banks and thrifts charge interest from the day they process your charge 
slip when you use your card to get cash. In addition to this, some cards are 
now assessing cash advanced service charges based on a percentage of the 
amount received. It used to be that service charges were based on a fixed 
fee, regardless of the amount of transaction.

If you avoid interest charges by paying off your bill each month, seek out 
a card that offer very low interest rates plus a grace period on purchases. 
Some institutions periodically offer cards with no fee for the first year as 
a promotion.

Don't be lulled into getting "premium" credit cards such as "goldcards" and 
Premier VISA. The only significant premium with these cards is the extra 
amount you pay in higher annual service fees. Besides the fancy finish of 
the card, the only other benefits you get with premium cards are travel 
insurance and the extra protection if your card is lost or stolen. Since by 
law, you are only liable for up to $50 if your regular credit cards are lost 
or stolen, the zero liability you are getting from premium cards is hardly 
worth the extra money.