Just because it is a credit card does not mean that it is good for you. As some companies are structured to make millions of dollars off of you. As I have written down a few tips on how to choose the right credit card.
The whole world loves to shop. Whether they are a man or a woman, young or old people love to get something new. People love browsing through the internet for products and eventually buying it. As shoppers tend to be impulsive, wanting to buy a certain product the moment they see it online. There for the need for a credit card is now greater than ever.
Just think about buying things at your convenience from your own home, as credit cards can help prevent the hassle of having to carry large amounts of cash, which is actually useless online. Choosing the right card, however, is not a decision to take for granted.
Some tips on how to choose a credit card:
1. Figure out how the card is to be used.
Can you keep your bill paid in full? If you can then, you might want to go for a credit card that has no yearly fee or one that has an extended grace period. However, if you're the type of person who always has a balance every month, consider choosing a credit card that has a low interest rate so you wont continue to go further into debt.
2. Picking the right bank / company
Understand that not all banks are good. You also need to consider the stability of the bank. When choosing a credit card from an unknown, or some new company just because they offer really low interest rates, you might want to rethink about it. As there might come a time that financial problems the company runs into would be charged on your account without you knowing about it.
3. What are the cost and features compared to other cards
Comparing card costs and features will help with choosing the right credit card for you. Banks and other card companies offer attractive packages that may make you choose without thinking. So take your time and weigh them against each other. Don't forget to take a look at the interest rates
Certain things to consider like:
* APR (Annual Percentage Rate), which is actually what they charge you for "borrowing" the money
* The yearly Fees is a charge for being a member of that bank or card company
* The transaction fees are the cost of making late payments or sometimes cash advances
* The Overspending fee is charged when you're still charging even if you're beyond the credit limit, which can be very costly.
4. Try to find out what the credit limit is.
This is the most critical part when choosing which credit card to use. Please be aware of companies who're willing to offer you a ridiculously high limit even if it's obvious that you don't have the ability to pay it. Knowing the credit limit will help you understand if you could handle paying the credit card off or you'd be just overspending which can ruin your credit score.
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