Ever since credit cards were invented, the types and brands of credit cards available have continued to grow. When deciding upon which credit card is best for you, there are many things that you need to consider. This, at times, can become somewhat overwhelming. To help you through the process of picking a credit card, here are a few quick tips to think about:
1. The Appropriate Card. The right card will be able to give you what you need as well as make your life easier financially. With these cards there are standard, secured, and reward cards that you can use. Whichever one you choose should depend on what you need from your credit card.
2. Credit Card Use – How you intend to use your credit card should directly impact the credit card you choose. For instance, if you intend to carry a balance regularly, you want a card that carries a low rate of interest. If you intend to pay off the balance fully every month, then the interest rate may not be as important. If you intend to carry a balance from one charge card to another, then you want to make sure you are getting a card that allows balance transfers at a low rate as well.
3. The APR Of Things – The APR should make a great deal of difference to you. Some cards offer a great introductory rate; however, beyond this the rate may not be so appealing. The APR has an impact on the finance charges that you see on your bill. This is particularly true with those who intend to carry balances on their credit card. You want to make sure you are choosing a credit card that carries an appealing APR for cash advances, balance transfers, and purchases.
4. Fees Shouldn't Come as a Surprise. Most credit cards charge fees for many different actions. You might be charged a small free for every cash advance. You want to check out annual fees because some cards charge these while others do not. Be sure that you understand late fees and any other type of fees that exist if you exceed the limit on your credit card. There may also be many other fees accessed by the company which can include copies of statements, how you pay your bill, and returned checks.
5. Rewards. Many people decide to use a certain credit card based on rewards that the company gives due to regular use of the card. Many credit card companies offer incentives to those who use the card. Some people have been able to earn frequent flyer rewards, gift cards, discounts, and sometimes cash back. Credit cards sometimes also have specific vendors which offer more incentives. Unfortunately, credit cards that offer rewards usually charge higher interest rates as well as other types of fees.
When deciding upon which credit card you want, it is highly important that you choose the right one. Choose a credit card that you understand, including all of the fees as well as the terms and conditions that come along with the card. Also be aware of any restrictions that the card might have.
