Choosing the Best Credit Card for the Purpose
Choosing a credit card is very tricky business. Here is an article that discusses some of the more popular credit cards available today.
Few things in the world can give a person the same sense of independence as that which is provided by a credit card.
The truth is you need to be extremely cautious when applying for a credit card, as it is a complex web of fees, charges, and interest rates (not to mention hidden clauses and terms which are not only illegal but also financially dangerous) which can sink you deep in debt.
You should go in for a credit card only if you are completely convinced that you will be able to take good care of it. But first, you will need a layman's crash course on credit card interest rates before you secure and swipe your card at the first opportunity.
Generally speaking, different applicants may get different interest rates. But usually the means for assigning interest rates on an applicant is based on his credit history. You would get a reasonably priced loan if you have a very good credit rating and no history of bad credit. Reasonably priced loans would not be given to people whose credit scores are faulty.
This may be done the hard way, by taking the brunt of the compromised interest rate which the bank will assign to you, or to choose a plan with a lower credit limit so that the interest rate follows accordingly. A prepaid credit card could also be a viable option. But this method of rebuilding credit is hard to secure and it charges even higher interest costs.
Sure enough, there are low interest credit cards or even zero percent interest plans which are available, but as expected, there is a catch: credit card providers try to ensure that the low interest is valid for no more than six months to a year. The rate that is charged on the completion of this period is generally a lot higher. For a monthly or annual fee, service alerts are offered, informing the borrower as to when his low interest period is due to expire.
However, these plans tend to be short term in their outlook. They do not have the lasting appeal of some other plans.
Some credit cards can also be used in an ATM to take out funds within the credit limit, but the interest is usually charged from the date of withdrawal, and not from the monthly billing date. This means that the issuer gets a higher payback in interest rate from the transaction than usual.
The credit card business is a competitive one and you could land up with some great deals. Just be on the alert for what your credit card provider is offering. Some may lure you with teaser offers of low rates for a certain period, whereas the regular rates can get as high as 40 percent.
Since there are no fixed regulations concerning interest rates and penalties on late payments, some issuers forfeit the teaser rates if the borrower does not make the payment on time, and replaces it with a penalty interest rate. Some can even be so unscrupulous as to charge interest even if the balance is fully paid on the due date.
One should make an effort to find a card that will be charging low rates of interest. The borrower must also make an effort to find a card which makes repayment easy for the borrower.
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Get 0% balance transfer credit cards and 0 interest credit cards. Even if you do not want to get into an app-o-rama, you should still get low interest rate credit cards and save money.