One of your post-divorce responsibilities has probably been to reestablish your financial stability, open new bank accounts and obtain new credit cards exclusively in your name. As you apply for new credit cards, it’s important to understand that they’re not all alike. Before you start responding to those extremely attractive offers you receive in the mail or see advertised, be sure you fully understand the fees and interest rates associated with each offer, or you could wind up paying much more than necessary for credit.                    

Speaking of utilizing credit cards, the total amount of revolving consumer debt in America, according to the Federal Reserve, is $904 billion (as of June 2007). This is up from $879 billion in late 2006. While many adults have credit cards, MSN Money reports that 8.3 percent of households owe $9,000 or more.      
               
When it comes to applying for credit cards, always shop around for the best deals. First, determine how you’ll be using the card. Assuming you have an average or above-average credit score, will you be maintaining a significant month-to-month balance on the card? If so, choosing a card with a low interest rate (APR) and low fees is most important for saving money.                     

If you’re the type of consumer who always pays your credit cards bills in full at the end of each monthly billing cycle, you can better utilize cards with higher interest rates, but that come with extra perks, like the ability to earn frequent flier miles or cash back on qualifying purchases. In 2006, approximately 40 percent of all credit card users paid their balance in full each month, according to the Federal Reserve Bank of Philadelphia.                    

Before completing any credit card application, carefully read the “Cardholder’s Agreement” and/or the “Terms and Conditions” statement that relates to the specific card and offer you’re considering. If you’re applying for a credit card online, you may have to search a bit for this document on the card issuer’s website. If you’re completing a printed application, the information relating to the fees and interest rates will be in the very fine print, not the bold headlines.