Reputation, Not Just Rates, Important When Choosing a Credit Card

With so many credit card issuers clamoring to get their plastic in your pocket, how do you decide which offer to accept? You might think that the choice boils down to the best rates and lowest fees, but the lender's reputation - for fair prices, clear and upfront disclosures, and truly helpful customer service - is just as important as the credit terms. So how do you know which companies are reputable and which aren't?

You'd Better Shop Around If You Want a Card You Can Count On

Ask the same questions for every credit card you consider. If you're not happy with the answers for a particular company, don't do business with it.

• Have you heard of the company before?
• Do any of your friends or family use a card issued by this company?
• Does the company have a Web site? (Most reputable credit card companies do.)
• Does the company's Web site or promotional literature outline all of the card's key terms? (Such as the APR, annual fees, cash advance rates and fees, late and over-the-limit fees and grace period.)
• Are the finance charges, fees and other terms in line with other cards' costs and terms?
• Can you quickly and easily reach a live customer service representative when you call the company? (Try calling before you accept the card.)
• Can the representative answer all your questions to your satisfaction?

Card Issuer's Site and Sound Reveal a Lot

You can learn a lot about a credit card issuer on the Internet. First of all, if a company doesn't have a website, think twice about doing business with it. E-commerce has become such an accepted way of doing business; red flags should go up for any company that isn't online.

Assuming you do make it to a card issuer's website, be on the lookout for any signs that the company may not be on the up-and-up. Does the site have a professional look and feel? Is key information easy to find? Are credit card costs and terms displayed clearly?

Don't stop at the website. Call the card issuer's customer service line. Is your call answered promptly? Does the representative sound professional? Does he or she answer all of your questions directly?

If you feel uneasy about any part of your experience with the company, move on to another card issuer. With so many options out there, it's better to be safe than sorry.

Beware of Extra Fees for Card and Card Products

It's typical for credit card issuers to try to sell additional products or services to their cardholders. While most issuers are upfront about their products and prices, it's not unheard of for a particularly aggressive marketer to charge you for a product like credit protection (which is a type of insurance that pays the minimum payment on your credit card if you become ill or unemployed) that you didn't purchase or that you cancelled.

Another thing to be aware of is a company that requires you to pay a fee before it will send you the credit card. In most cases, you should refuse the card and look elsewhere for credit. If, however, you're having a difficult time establishing credit, you may not have a lot of options. In that case, check and double-check to make sure that the card issuer asking for the fee is a highly reputable one. Otherwise, you just might lose your money.

Federal Law Protects Consumers' Rights

Credit card companies are required by federal law to spell out all of the costs associated with the credit you are granted. This information should be included in any credit card offer you receive and on the back of the monthly statements. If you can't find information about a card's fees, be sure to talk to a company representative until you're satisfied. If that still doesn't reassure you, walk away and look into other credit card offers.

If you think you've been misled or deceived by a credit card company, you should immediately contact the Federal Trade Commission's Consumer Response Center at 877-FTC-HELP (382-4357).

When you give a credit card company your business, you're casting a vote of confidence. Make sure the company you choose deserves your business and your trust.