Today we are going to learn how to choose a credit card.
First thing that you need to answer to yourself is for what you need the credit card; What is your main need to cover by deciding to have a credit card; And after that you can start shopping around to see what credit cards are on the market and you will be able to find the best that fits with your needs. Some other questions that you need to ask is:
- If you are going to be charged for an interest rate or not. Some credit cards offer you a promotion of a 0% or a really 3% — a small percentage rate only at the beginning. So, you’re going to need to make sure that you are going to be able to pay off your balance with that lower interest rate or if that’s not going to be possible, it’s good for you to know what is the interest rate that you are going to have after that promotional rate.
- Another thing that you will need to know probably is how the interest rate is calculated. If it is a compound interest and how many balance cycles they are going to use in order to calculate your finance charges.
- Another thing to make sure is if you’re going to be paying some fees. Some credit cards will charge annual fees so at the beginning probably you will not notice or sometimes when you start with a credit card they don’t charge you the first one but then after a year you can start paying for that. So, it’s good for you to know if this credit card that you are thinking about applying for is going to charge you with an annual fee.
- Another thing is for what you are going to be using the credit card. It’s for you to build history, it’s for you to use it as your regular way to pay your bills, or if you’re going to be transferring money from another credit card just to take advantage of a higher limit or take advantage of a better interest rate. It’s another good thing to know because probably you can end with a credit card that doesn’t fit the main need for what you want that credit card.
Ref: http://www.ehow.com/video_4957170_choose-credit-card.html