When you are going about choosing a credit card, there are certain things that you will need to be aware of. This article will help you make the right decision on a card that can match your needs. The last thing you want to do is apply for the first card you come across. When you start to do your research, you’ll quickly learn that each card is very different in its own way.
Introductory Rates
A lot of people are anxious to get a credit card that comes with a ridiculously low or even no interest rate, but there’s usually a catch. This is typically only the introductory rate, so it only lasts for a certain amount of time. After that period of time has expired, you will have to start paying a significantly higher rate.
It is important that you look at the fine print with each card before applying for one in particular. If an interest rate on a certain card seems too good to be true, it probably is. You need to know exactly when the rate is going to change so you will be prepared. The credit card company should have this information listed on their site, but not all of them do.
Balance Computation Method
Not all credit card companies use the same method to come up the amount you pay for your monthly finance fee. You should look for companies that use the adjusted balance method, as it usually results in the lowest possible amount. Companies that use the average daily balance method typically charge more for this recurring monthly fee. You will have to keep this in mind when you are examining your options.
More Than One Interest Rate
There was a time where every single credit card or even payday loan had just one interest rate, but today that is no longer the case. These days lots of credit cards have multiple rates, so you will have to be aware of that when you are shopping around. There is a rate for purchases, another for cash advances, balance transfers and other things. You will have to look at each of the rates for the cards you are interested in before deciding which ones to apply for. This will help you save a lot of time and needless frustration.
Variable vs. Fixed Interest Rates
Some credit cards come with fixed interest rates while others are variable. A fixed rate will always stay the same no matter what, whereas variable rates can change over time. While it might seem like fixed rate is the way to go, it isn’t quite that simple. The fact is that a variable interest rate can work in your favor, but there is never any guarantee. Most credit cards these days come with variable interest rates, though there are some exceptions. You should consider this before deciding on a certain card to get.
Fees
Every single credit card comes with a multitude of fees that you need to be aware of. There are annual fees, late fees, balance transfer fees, and fees for going over your limit. You absolutely need to find out what the fees are with each card you look into. This will help you make the best possible decision overall. Look for credit cards that do not charge an annual fee, as this can save you some money. It might take a little bit of research, but it is well worth the effort.
Grace Period
The grace period is basically the window of time you have to pay off your credit card charges without incurring any interest. The length of this period varies depending on the card, which is why you will need to consider it carefully. The longer this period is, the easier it will be to pay off your card without spending any more money than necessary.
Privacy Policy
Take a close look at each credit card company’s privacy policy so you know exactly what it says. Believe it or not, most of these companies tell you right in their policy that they can share your information with third parties. If this makes you feel a little uncomfortable, you aren’t alone. Make sure that you take the time to read this fine print before agreeing to anything.
Choosing the right credit card can take some time because of all the different options that are available. The more research you do into your options, the better off you are going to be. It is crucial that you make a point of considering all of these things so that you do not make the wrong decision. A credit card can be incredibly helpful for a number of reasons, but you don’t want to choose just any of them to apply for.