Read the information about two competing credit cards. Credit Card 1Credit Card 2Interest rate0% introductory rate, then 13.8% after one year12.1%Annual feeNoneNo annual fee in the first year, then $30 each year thereafterCredit Card 1 would be the better option if the borrower

Credit Card 1 charges 0% interest during the first year, so a borrower with major expenses then could avoid interest on those costs during that introductory period. After the first year, its 13.8% rate is higher than Card 2’s 12.1%, making Card 2 more favorable for carrying a balance later.

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