Most people will agree that having a credit card is a great way to move towards a more responsible and independent way of life.

The truth is you need to be extremely cautious when applying for a credit card, as it is a complex web of fees, charges, and interest rates (not to mention hidden clauses and terms which are not only illegal but also financially dangerous) which can sink you deep in debt.

However, if you are convinced that you are responsible enough to use a credit card wisely, you should go in for one. But first, you will need a layman’s crash course on credit card interest rates before you secure and swipe your card at the first opportunity.

Generally speaking, different applicants may get different interest rates. But usually the means for assigning interest rates on an applicant is based on his credit history. If your credit history is good, the interest rate that you are approved for will be a fairly good one. If this is not the case, you would have to work at improving your credit score.

This may be done the hard way, by taking the brunt of the compromised interest rate which the bank will assign to you, or to choose a plan with a lower credit limit so that the interest rate follows accordingly. A prepaid credit card could also be a viable option. But this method of rebuilding credit is hard to secure and it charges even higher interest costs.

Sure enough, there are low interest credit cards or even zero percent interest plans which are available, but as expected, there is a catch: most of these low interest cards have only a short, say six-month, period during which the interest is low. Once this introductory period is past, a higher rate takes its place. For a monthly or annual fee, service alerts are offered, informing the borrower as to when his low interest period is due to expire.

However, these plans tend to be short term in their outlook. They do not have the lasting appeal of some other plans.

Some credit cards can also be used in an ATM to take out funds within the credit limit, but the interest is usually charged from the date of withdrawal, and not from the monthly billing date. This means that the issuer gets a higher payback in interest rate from the transaction than usual.

Make sure that you are clear about the terms that your credit card provider is offering. Remember that interest rates could vary across providers. Some may lure you with teaser offers of low rates for a certain period, whereas the regular rates can get as high as 40 percent.

Since there are no fixed regulations concerning interest rates and penalties on late payments, some issuers forfeit the teaser rates if the borrower does not make the payment on time, and replaces it with a penalty interest rate. Some can even be so unscrupulous as to charge interest even if the balance is fully paid on the due date.

You should keep an eye out for the card that is the most affordable. However, the low rates are not enough. One must make sure that the other terms are not difficult to deal with

The Nest Credit Card from American Express. For your happily ever after.SM

Popularity: 74% [?]

You can earn up to 3 free nights at a Starwood Resort with your first purchase.

The Starwood Preferred Guest Credit Card from American Express offers cardholders discounts on hotels within the Starwood Hotels organization, as well as points redeemable for frequent flyer miles, and special rates on Amtrak services.

Cardholders have a few options to start building points quickly. The Starwood card offers 3 points-per-dollar spent on any Starwood related purchase, and 1 point-per-dollar spent on any other purchase. It offers it’s cardholders 1,000 bonus points for their first stay in any Starwood hotel and 500 bonus points for each additional stay (up to 10). In addition, there is a 4,000-point bonus for the first purchase made with the card.

These points are redeemable in increments of 7,500, which is equal to a discount of $100. Cardholders can opt out of the discount on hotel stays, and instead redeem their points for frequent flyer miles, special rates on Amtrak services, or other travel-related services.

Since it is an American Express card, there is an extensive list of additional services and benefits. Travel-related services include things like fraud protection, travel accident insurance and car rental insurance. Shopping benefits include American Express’ Buyers Assurance Plan, Purchase Protection Plan, Return Protection, and access to special events through Ticketmaster.

The interest rate on purchases is above average for similar cards, and it carries an annual fee of $30, which is waived for the first year of owning the card.

The Starwood Preferred Guest Credit Card is a good value for the frequent traveler who can afford to pay the card’s balance in full every month, and can take advantage of the savings the card has to offer.

Starwood hotels is a worldwide organization that includes Sheraton, Four Points, St. Regis, Le Meridien, Westin, and other well known hotel chains.

If you enjoy the comfort and luxury of the many Starwood Hotel, then this card is a can’t miss!  The rewards are easy to obtain, and are very useful. The rewards program includes:

• Earn 10,000 Starpoints with your first purchase - enough for up to 3 free nights at a Category 1 or 2 hotel.
• Use Starpoints for free nights and upgrades at over 825 participating Starwood hotels and resorts in 95 countries.
• Transfer Starpoints - almost always on a 1:1 basis - to the frequent flyer programs of over 30 major airlines.
• Earn one Starpoint for every dollar of eligible spending and double Starpoints at participating Starwood properties and retail outlets.
• First year fee-free and only $45 thereafter.

Starwood Preferred Guest® Credit Card from American Express.  Apply now.

Popularity: 75% [?]