Credit card companies have different rates, fees, penalties, and other terms. Study the two examples of credit card terms that follow. Evaluate these two credit card offers. Which one would you choose? Why? Credit Card A: This card has a special introductory APR of 0 percent for the first 18 months and for any balance transfers made within the first 60 days. After that, a fixed interest rate of 12.99 percent applies. There is an annual fee of $50, and a transaction fee of 3 percent on all purchases made outside of the United States. This card also has a rewards feature that gives you back 1 percent in cash each year.

Credit Card B: This card has a special introductory APR of 0 percent for the first 12 months and for any balance transfers made within the first 30 days. After that, a variable rate of 10.99 to 20.99 percent applies. This card has no rewards feature, no annual fee, no transaction fees, and no penalty fees for making late payments for the first 12 months.