How To Choose A Credit Card

Your mail box may be flooded with mails containing attractively feasible credit cards schemes, tempting you to apply for them. However, you need to choose the right credit card depending on the purpose you want to use it for, your monthly expenses and a broad range of other factors. What’s the point of using a credit card that offers several lucrative schemes, but not the ones that you would require? For those who want some help on how to choose a credit card, read the article for useful tips to guide you.

Tips For Choosing A Credit Card

Explore your options well. There are a range of credit cards available with varied uses. Credit cards are also available for travel and entertainment such as Diners Club card, bank credit cards and retail stores card.You have to choose your credit card depending on the purpose you want to use it for.
Consider how you will use the credit card. A credit card with low interest rate will suit people, with whom there is a possibility of not paying the full credit card bills every month, and instead paying only the minimum amount. In case, you want to use your card for fresh advances, a credit card with low interest rate and low fees-on-cash advances will suit you.
Also get the Annual Percentage Rate (APR) and periodic rate for purchases, cash advance and balance transfers verified. Compare the information with the monthly rate schemes to determine whether the APR suits you.
Another thing to find out is whether the APR is fixed or variable. In case your card has a variable APR, you need to find out the range of variation. You can also go for a fixed rate, if you plan to make only moderate purchases.
You also need to know whether the credit cards are grouped with cash advance plans and if there are interest-free or grace-free periods. You can save your self from paying interest on late payments, in case your card provides that advantage.
Figure out want payment plan suits you. You can either opt for a card that asks for a monthly payment or the one that allows for periodic payments. The periodic payment plan will suit those who have to make heavy purchases.
Also, figure out if your credit card is only regionally acceptable or nationally as well. Some credit cards facilitate purchase only in specific stores or states.
Confirm if your credit card offers attractive packages with certain credit levels, such as travel and accident insurances, cash discounts and guarantees or warranties.

Additional Tips

Before applying for a credit card, read the fine print well and confirm all the fees charged by the credit card company under different circumstances.
It is advisable not to keep several credit cards with you, as it can help in limiting certain unnecessary expenses.
Make sure to keep a track record of all the purchases made through credit cards.

How to Cite

Related Articles

See also

More in 'Society'