How to choose right credit card for you

How to choose right credit card for you

It is always better to shop for credit cards, and compare the offers before you commit to a credit card that does not meet your financial goals. One of the easiest ways to do this is shopping online and using a credit card search engine. The days when people would feel that Internet is not so secure are gone – now there are financial transactions running into thousands of dollars that are transacted online due to improved online security and SSL protocol which ensures that confidential information remains encrypted. You can be rest assured that you can shop for credit with total safety and peace of mind. In fact, you can also order instant credit online with low credit limit by simply ordering it online.

Instead of just going to one credit card and getting one-sided information, it is better to do comparison of shopping sites where you can get information about a lot of competing credit cards as they vie for your attention. Just to be on the safe side, in terms of choosing the right product, make sure that you do enough research. You can also take your time and read though the views and reviews of people who have bought or tried a particular credit card that you are interested in.

Be aware of the terms that are a decisive factor in choosing and using credit cards. For instance, the interest rate and the APR, they determine how much finance charge you end up paying the credit card, if you pay back amount late or not in full.

Interest rate is actually expressed in terms of a year, which is why it is known as APR or Annual Percentage Rate. At times, there may be different APRs also applicable for instance, on cash advances and balance transfers. The banks have to disclose all of them right down to percentage points, according to Federal law.

 

Bear in mind that if you are someone who does not carry the balance over to the next month or so, then the APR may not hold much importance to you. Still, it is always better to go for the credit card with a lower APR. If you are choosing a balance transfer card or an introductory card with a special promotional rate, find out to what extent or period of time the introductory rate applies, and on what grounds can the rate increase.

You should also look for a credit card that has a fairly long grace period compared to others. There is no point in taking a credit card, in which you start paying the interest from the date of purchase, which actually holds true for cash advances.

Annual fees are also another criterion. If you are someone who revolves the balance, you may go for a credit with annual fee and low interest rate compared to the one with high interest rate and no annual fee. Cash back credit cards also tend to have annual fees in order to compensate for the frills you get by using the card. You should also have a close look at fees like late payment charges; over-the-limit costs etc; which may kick in if you are not able to pay back the credit card charges in time. The good thing is that it is quite easy to do all of these things because all the information is right in front of you in credit card comparison sites.

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