Despite the many articles on how to find the right credit card, a lot of consumers still make the mistake of applying for the wrong credit card.
In this article, let’s discuss tips on how you can choose the right credit card for you:
Compare the right things.
Check out credit card review websites so you can get a better idea about credit cards available in the market. These reviews can help you eliminate poor choices. Pick at least three options and be ready to do further evaluation by reading the complete Terms and Conditions of each credit card.
Compare interest rates.
When comparing interest rates, understand how the APR is calculated. Keep in mind that credit cards with variable interest rates are dependent on the Prime Rate. The initial APR may start out low but when the Prime Rate increases, so will your credit card rate.
Annual fees.
Some people focus on the interest rate alone. But keep in mind that the APR is just one factor. Even though a credit card has a low APR, you still need to watch out for high fees such as annual fees, late fees, and transaction charges.
Security.
Does the credit card protect you against possible fraud and ID theft? The best credit cards in the market today offers credit card fraud protection systems, secured online access to your account, zero liability protection for unauthorized charges, and 24/7 reliable customer support in case you may need assistance.
Grace period and time limits.
Be sure to choose a credit card with sufficient length of grace period. A longer grace period gives you more time to submit your payment without before incurring additional interest rate fees.
The type of interest rate.
Some credit cards carry more than one rate of interest. The APR applicable for new purchases may be different from the rate applied to balance transfers and cash advance transactions.
Watch out! Some credit cards may offer zero percent introductory rate on balance transfers only but an expensive rate on the other two transactions. Furthermore, be wary of credit cards that offer 0% APR with a very short introductory period. When the zero interest rate expires, you may find yourself stuck with a card that imposes unreasonably high rates and fees.
