A credit card can be considered a chainsaw, you will find that it is really handy, but this can in fact cause so much damage if being used improperly. Be sure to choose your credit card in a wise manner. Below are some of the things that will help you on your selection.
The Interest Rates
On a credit card, you will be able to see the interest rate appear an the Annual Percentage Rate (APR). This could be a fixed rate or this can be a variable rate that’s tied to another financial indicator that’s known as prime rate. In a fixed rate card, you will learn what is going to be the interest rates for every month and cards that have variable rates could fluctuate. But you should be aware that cards with fixed interest rates could be changed based with certain triggers like the card payment or cards that are late or when you go over your limit. This may also be because of the case to where the issuer of the credit card decides on changing it.
Limit on Credit
This actually is the amount of money to which the credit card issuer is going to be willing to let you borrow. They will base it with your credit history. You would not want to be placed in a situation to where you will be close on maxing out your credit limit. This can in fact do damage on your credit score and there are some credit card issuer who cut off the credit limits of customers to amount’s which are lower that their current balance. There is likewise a penalty if this happens.
Its Penalties and Fees
There are various ways with how the credit card issuer can make money from you. The common charges will include fees on the transactions like balance transfers and cash advances or through simply asking on increasing your credit limit or in making payments through phone. There are various penalty charges when paying your bill late or if ever you go over on your credit limit.
See to it that you choose credit cards with reasonable fees. On its balance transfers, consider those that have no transaction fees and those that also have 0{85597e315f54b24a8b57564ac0459c68715ee5ba9856964ae2e12a175f3c4998} interest rates for at least its 12 months. Avoid also paying extra on their reward programs.
Incentives
There are a lot of card issuers that offers a reward program for their customers so they will be induced in using the card. You should try looking for programs that comes with flexibility like rewards and cash or travel which you can use and one which could be redeemed and earned easily.