Credit Cards – How to Uncover the True Value?
In the contemporary world, credit cards have become such an integral financial means that it is no wonder the financial market is overflowing with a vast array of these products. But with so many types and companies to choose from, it is quite easy to get lost and confused.
Not to mention the fact that many companies invent different schemes to lure and attract customers to apply with them. So how does one succeed in finding the best credit card deals? Here, are the factors that you have to know about to help you uncover the true value of the deals offered to you:
APR or Annual Percentage Rate
An APR refers to the measure of the cost of credit expressed as an annual percentage rate. The lower the APR rate is, the less is the money you need to pay when you have a balance. Most cards come with an introductory offer of a 0% or low APR. While this sounds like a grand deal, it is vital to know how long this teaser rate will last and how much the real rate is when it expires.
Moreover, you also need to consider whether this rate is fixed or variable. A large percentage of companies today have variable rates that fluctuate with an index. And if you are not watchful, you can be surprised one day when you find out how much the rate has increased.
A fixed rate, on the other hand will not fluctuate monthly or quarterly. However, it can still change after some time. The company, which issued you the card, should notify you at least 15 days before putting any changes into effect.
This fee is flat, yearly fee that typically amounts around Rs. 1286 to Rs. 2572. It is a good idea to avoid cards that require such charges. Although there are some companies, which charge annual fees and offer prestige rewards and services in exchange. Consider carefully if these perks are worth paying for.
Transaction Fees and Finance Charge
Transaction fees are the amount charged to you for any cash advance, late payment, for going over the credit limit or for not using the card for a month. A finance charge, on the other hand, includes all interest costs and charges, and is what you have to pay for in order to use credit. When finding for the greatest credit card deals, be assured to study all about these costs before you consider applying for any card.
Also, known as the free period, this is the number of the days that the company gives you before they start charging you with interest rates. This time-frame is usually around 20 to 25 days. Avoid credit cards that do not provide grace periods.
1. Always be sure to shop around. Stopping at the first company you see, even if you think it would give you an excellent cash back credit card application, is not a wise move. There may be even better options out there.
2. Take into account how finance charges are calculated so you can get an accurate cost of your credit.
3. Always be on the look for low interest rates.
4. Also, be wise in choosing your credit limit.
5. If you are in a hurry consider best instant approval credit deals.
Finding the best credit card deals is not going to be that difficult anymore now that you know what the things to watch out for are.
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