Credit card offers can be filled with confusing lingo. But the meaning behind terms like APR and variable interest rate can reveal whether a credit card actually makes sense for your personal finances.

A good rule of thumb is that the fine print usually matters more than the flashy, bold print. Understanding what these terms and conditions mean — and how they affect your personal financial circumstances — can help you make better purchasing decisions and avoid unexpected costs in the future. Keep reading to learn how to decode credit card offers.

Introductory vs. Ongoing Offers

Finding a credit card with a 0% APR can feel like striking gold. But be aware: many cards offer a 0% teaser rate that expires after and introductory period — usually within six to 18 months. Be sure you understand what the card’s standard rate will be, too. The standard rate kicks in after the teaser rate expires and will end up having a bigger impact on your long-term finances.

Variable vs. Fixed Interest Rates

All credit cards offer either a variable or fixed interest rate. Variable interest rates are tied to the Prime Rate, meaning they change according to market performance. In contrast, a fixed rate generally remains the same and provides more predictability. These interest rates apply to any overdue balance carried past the grace period.

Fees

Some credit cards are accompanied by various fees, including annual fees, balance transfer fees or late payment fees. Note that not all cards come with fees, and some come with more than others. You’ll want to review the credit card’s fine print to know what fees apply, and when.

Rewards

Many cards come with perks, such as travel miles, gas rebates or cash back. The terms will say whether specific purchases are only eligible, or if the rewards kick in after you’ve spent a certain amount on the card. While rewards may be tempting, they shouldn’t drive your decision – especially if they lead you to spending more than what you can afford.

Be sure to choose a rewards card that makes sense for your lifestyle. For example, if you’re a committed homebody who rarely travels, a card that offers travel miles won’t benefit you much.

Taking time to understand a card’s terms and conditions can prevent surprise fees or unexpected rate increases – and lead you to a card that ultimately supports your financial goals and circumstances. And remember, even the best terms or most generous rewards are meaningless if using the card leads you into ongoing debt you can’t pay off quickly.

If you would prefer to seek out credit only when you’re ready, you can stop receiving pre-screened credit offers by visiting OptOutPrescreen.com