Many credit card companies now offer allowances to attract new customers, including introductory offers with zero interest rates on transfer balances, award programs for airline miles and cash back, and discount programs with specific merchants. While these offers may be tempting, there are five key factors, none of which include additional offers that you should consider when choosing a credit card.
Fees
One of the primary factors to consider when selecting a credit card is the associated costs of using the card and the full cost of all cards. Companies can charge various fees, the most common being annual, closed, over-limit and late fees. Because not all companies charge the same fees and the charge levels may vary, it is important to read the details and details that come with all credit card offers.
Annual fee
The annual fee is a membership card or participation fee, which is charged for the card. Annual fees can range from $25 to $50.
Closing Fee
Some companies also charge a closing fee when the account is closed. This fee is also between $25 and $50.
Excess costs
If your total purchase and cost exceeds the credit limit you can use for new expenses, you will exceed the limit fee for evaluation. In general, this fee is about 25 US dollars.
Overdue Fee
Overdue payment is charged on late payment. Some companies evaluate late fees one day after the payment due date. Late payments may also cause your annual percentage rate to rise.
Annual Percentage
The Annual Percentage Rate (APR) is one of the most important factors when selecting a credit card, if not the most important one. The annual interest rate expressed in terms of annual interest rate is the interest rate for unpaid balances. Low rates are preferred because this means you will pay less for credit cards. A credit card can be used for balance transfers, cash prepayments and purchase requests for different APRs.
CREDIT LIMIT
You should also consider the credit rating provided when choosing a credit card. The credit line is the amount available for purchase, cash advance, balance transfer, fees, and finance charges. Based on your credit rating and income, your credit line can start from department store credit cards as low as $200, while major credit cards (Visa and MasterCard) can be as low as several thousand dollars.
Protected credit cards are not protected
Another factor to consider when selecting a credit card is whether the credit card is secure or unsafe. The user who guarantees the credit card pays a deposit for credit. These preferences tend to attract two types of individuals, those very young people, who have difficulty establishing credit, and whose credit reports are flawed and prevent them from obtaining unsecured credit. Guarantee credit card credits usually depend on your deposit amount.
Unsecured credit cards are by far the most widely held credit cards and often have higher credit limits.
GRACE PERIOD
The last factor to consider, the grace period, is the length of time that you must pay your credit card balance in full without interest charges. The grace period for an ideal card is 25 days or longer. If you hold a balance each month, you will be paid interest no matter how many days are in grace period, only the newly purchased product can be exempted for 25 days. The grace period usually does not apply to cash advances and balance transfers.
PERKS AND REWARDS
Although not one of the five key factors, I still find it necessary to write some stunts. Many credit card companies provide benefits to attract new customers and reward loyal customers. Benefits can include a rewards program that rewards your airline miles and cash back your purchase. Some cards can also provide discounts for certain merchants and credit card registrations. These cards can protect you if your card is lost or stolen. Unless you often use a credit card, you should consider it as the last consideration when choosing a credit card, because the biggest return tends to be the largest consumer.
Orignal From: Five factors to consider when choosing a personal credit card
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