Things to Keep in Mind While Choosing a Credit Card

Credit Card

Credit Card

Credit Cards play a vital role in making our lives easier. You can a lot of things when you do not have money in the bank account or in your wallet. Moreover, it is very important to choose your credit card carefully. There are multiple rules that you need to know before going to shop for credit cards.

  1. Rates of interest: is the amount that has to be paid for the privilege of borrowing the money and one of the most important factors that one considers when lending or borrowing money. It is usually expressed in an annual percentage rate. The higher the interest rates, the more amount of interest that you have to pay. The interest rate is usually of two types that are fixed and variable interest rates. Under the fixed interest rate scheme, the card continues to have the same interest from month to month. A variable interest rate varies from month to month and can increase your overall balance as the amount of interest you’re charged for increases. Hence, try to get a fixed rate before itself to avoid any unforeseen surprises.
  2. Credit Limit: is the maximum amount that one can borrow on a credit card without any penalty. A person with good credit can get credit limits in thousands. If you exceed your credit limit, then the credit card issuer may not charge any extra fee, but it can affect your FICO score.
  3.  Fees: There are various charges that are linked with a credit card. The credit giver may demand fees for cash advances, delayed payments, requesting for an increase in your credit limit, and balance transfers. These charges vary from card to card.
  4. Reward options: there are also some reward options that will come up with your credit card. It can also be in the form of free airline miles, cashback offers, discounts on purchases, etc. Make sure that you get a reward system that fits your lifestyle.
  5. Spending habits: If you’re the type who likes to carry a balance, then you have to make sure that the card you choose allows it. Some cards will require you to pay the whole amount every month. You should go through the terms and conditions before accepting the offer to make sure you don’t get in over your head.


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