Choosing a Credit Card
If you’re like most people, you probably get a lot of credit card offers in the mail. Some of them can seem very urgent, leading you to believe that you must act quickly or you will miss out on the opportunity to receive such a great offer. However, there will always be more offers, so don’t allow yourself to feel pressured into responding right away. Take some time to compare the many credit card offers available and find the one that is best for you.
Reading the terms and conditions for each credit card offer is always the first step in evaluating the card. After reading the fine print, you might find that the offer is not nearly as attractive as it first sounded. By comparing the APR and fees for each card, you can determine which cards will cost you more to use and avoid them. Watch out for interest rates that can change because this can result in a much higher cost to borrow money than you were expecting.
Another thing to beware of is annual fees. Unless you have bad credit, you should not have to settle for a credit card that charges an annual fee. These fees usually range from $25 to $100 per year, but sometimes they can be much higher. Even if you never use the card, you will have to pay the fee every year, so try to get a credit card with no annual fee if you can.
The length of time that you have to pay your balance without incurring interest charges is something you should take into consideration when choosing a credit card. The average time is around 56 days, but some cards have longer grace periods and others have none at all. If there is no grace period, you will be charged interest beginning from the date you charge something on your card.
Credit cards come with many different fees, and they can add up to quite a bit of money, so it is necessary to find out what fees will be charged before applying for any credit card. There is almost always a fee for making a late payment or taking out a cash advance, but other fees can vary. For instance, some credit cards have fees for not making a purchase during a given month.
One last thing to think about when deciding on a credit card is whether there is a rewards program and how much you would need to charge to earn the reward of your choice. If you choose a card with a good rewards program, you can earn cash back, airline mileage, or merchandise valued at anywhere between 1% and 5% of the total charges you make on the card.
Remember that there are hundreds of credit card offers available at any time, so you don’t need to be in a hurry to choose one. Take your time and compare the fees, interest rates, and rewards offered by each card in order to choose the right credit card offer.