A credit card is a form of borrowing money that often involves charges. Credit card terms and conditions affect your overall cost. So it's wise to compare terms and fees before you agree to open a credit or charge card account. You also may want to study these terms when you're shopping for a card. The following are some of the important terms to consider that must be disclosed in credit card applications.

The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements.

The card issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period.

Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators change. These plans are called "variable rate" programs. Rate changes raise or lower the finance charge on your account. If you're considering a variable rate card, the issuer must also provide various information that discloses to you: that the rate may change; and how the rate is determined - which index is used and what additional amount, the "margin," is added to determine your new rate. At the latest, you also must receive information, before you become obligated on the account, about any limitations on how much and how often your rate may change.

Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you will have enough time to pay.

Most issuers charge annual membership or participation fees. They often range from $25 to $50, sometimes up to $100; "gold" or "platinum" cards often charge up to $75 and sometimes up to several hundred dollars.

A card may include other costs. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Also, some charge a monthly fee whether or not you use the card.

If you don't have a free period, or if you expect to pay for purchases over time, it's important to know what method the issuer uses to calculate your finance charge. This can make a big difference in how much of a finance charge you'll pay - even if the APR and your buying patterns remain relatively constant. See page 4 for examples of how the methods can affect your costs.

  Small business credit cards offer some terrific tools to help you manage your business. Credit cards for businesses typically come with generous credit lines and 0% interest or low-interest introductory terms, and many offer additional, very attractive benefits.

  Choosing a business credit card that provides the best terms and flexibility for your specific business needs is important. If you need start-up capital or a temporary cash infusion for an existing business, consider 0% balance transfer cards. With a 0% introductory APR, these business credit cards effectively offer an interest-free loan for up to 15 months. Some cards even offer a low 7.99% APR after the introductory period. As always, know the terms and conditions of your card to avoid triggering higher rates and fees.

  If you plan to pay the balance in full each month, consider a small business credit card with a cash back offer. Many credit cards offer up to 6% cash back on business purchases and 1% on other purchases. Some cards carry a reward limit, but many do not.

  Charge cards, such as the Business Gold Reward Card from American Express have higher spending limits and generally no limits on rewards accumulation, but they must be paid off in full every month. These cards are extremely versatile, allowing you to redeem earnings for travel, merchandise, etc. for your business.

  If your business involves travel, consider a corporate credit card that awards frequent flyer miles or allows you to accumulate points towards free travel. Use this card to upgrade seats, book last minute tickets, or for expensive routes.

  To maximize earnings, many business owners add employees as additional cardholders, giving each employee a preset spending limit. Adding cards for employees also enables you to consolidate your business expenses into one account, saving you from tedious and costly paperwork.

  Most business credit cards offer free expense reporting, which sorts purchases according to category and gives you an easy overview. You will also be able to download your statements directly into accounting software, which greatly simplifies your business accounting.

  We also have a wide selection of credit cards for individuals that offer many benefits, including 0 apr for an introductory period, low interest, cash back, rewards, or frequent flyer miles. The same business credit cards listed above can also be found in each of the card categories on our site that are for individuals.

Your credit history includes all your credit cards, how much you owe, how timely your payments are, and can be reviewed by landlords, employers, and car loan companies. It follows you everywhere! Review these tips for managing your credit wisely to ensure a healthy financial future: