Credit Cards Aren't All Alike - Compare Them!
When you're ready to get a credit card, don't just pick the first one that sends you an offer. Credit cards have different fees and rules. You should shop around for one with no annual fee and a low interest rate. Be sure to read a credit card's "terms of agreement" before applying.

	Card A	Card B	Card C
Application Fee	none	$30	none
Annual Fee	$20	$35	none
Interest Rate	15.9%	22.9%	16.0 %
Grace Period before interest is charged	20 days	25 days	25 days
			Best choice

Alternatives to a Credit Card - Debit Cards and Prepaid Cards
If you're not ready to handle a credit card, or don't want one, there are other payment cards you can use at the cash register. They are just as convenient, but work a little differently.

A debit card (or "check card") comes from your bank. When you use it to pay for something, the store takes money directly from your bank account. You don't have to pay anyone back or pay any interest. You won't get into debt because you can't spend any more than you have. Many people prefer to use debit cards for this reason. It's important to keep track of your spending, though, by keeping all receipts and recording them in your checkbook later.

A prepaid credit card for teens works like a prepaid phone card or a gift card. Your mom or dad gets the card and transfers a certain amount of money to it, say $300. When you use it, the store deducts money from the card. You can spend only up to the amount on the card. Teens can use these cards to practice using a credit card and budgeting their money.

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