What To Look For In A Credit Card
- Date: 2010-08-26 - Word Count: 538
Share This!
How many people do carry credit cards with a very high annual percentage rate when in fact they started out with zero APR? It's because the credit card industry is experienced in hiding fees and interest rates which are as flexible as to mount readily when the consumer has been already hooked into the system.
So to find the credit card with better deals, be sure that you fully understand the system governing your credit card. This means that you should have computed a rough estimate of the real cost of your credit system. A bunch of credit offers could have flooded your mail box, all of them sounding better than any other. And what should you do with all these flashy leaflets?
Don't be easily tempted to bite into the introductory offer that seems too good to be true, because it is usually too unreal. Zero annual percentage rates are generally promotions that cover only up to six months. It goes to show that after that span of time, you will then pay the annual charge of the credit company as you utilize your credit card. If you blindly agree to those terms then you may suffer rate hikes of up to 13% even when you promptly pay your balance.
For the case of those who pay their monthly bill promptly, the credit card with a grace period will work for you. This grace period is the allotted time for you to pay your bill before it could accrue interest. You see, some credit card providers charge you the interest upon your purchase. Therefore, you will pay an extra amount even when you pay your due on time.
When you read the credit offers, be sure to read all that has been printed including fees disclosure. No matter how small the printing is, its importance is a big factor to your financial management. This section contains the salient fees that are waiting to be charged to you.
These fees include the annual fees, closure fees, late fees and overseas transaction fees.
The annual fee can be avoided if you pay your bills on time and if the company terms state so. Better yet, find a credit card provider which values promptness in payment.
The closure fee is the charge when you are to close your account. Imagine this fee that you will still have to pay right before you leave the company? Subsequently, this is done to keep their clients, but as a client, you should have the freedom to close an account anytime when you have settled your accounts and when you are no longer satisfied with the service. So better actually ask the credit provider if they charge this fee before you sign up your application.
The late fee is of course the charge when you don't meet your due date. At least this one, you are charged because of overdue and it is mostly your fault.
The point here is that you have to read between the lines of the credit offers.
The overseas transaction fee is charged when you use your credit card abroad. This used to be a 1% fee by Visa and MasterCard. Later, because the providers want to profit more, it has increased to pin another one or two percent.
So to find the credit card with better deals, be sure that you fully understand the system governing your credit card. This means that you should have computed a rough estimate of the real cost of your credit system. A bunch of credit offers could have flooded your mail box, all of them sounding better than any other. And what should you do with all these flashy leaflets?
Don't be easily tempted to bite into the introductory offer that seems too good to be true, because it is usually too unreal. Zero annual percentage rates are generally promotions that cover only up to six months. It goes to show that after that span of time, you will then pay the annual charge of the credit company as you utilize your credit card. If you blindly agree to those terms then you may suffer rate hikes of up to 13% even when you promptly pay your balance.
For the case of those who pay their monthly bill promptly, the credit card with a grace period will work for you. This grace period is the allotted time for you to pay your bill before it could accrue interest. You see, some credit card providers charge you the interest upon your purchase. Therefore, you will pay an extra amount even when you pay your due on time.
When you read the credit offers, be sure to read all that has been printed including fees disclosure. No matter how small the printing is, its importance is a big factor to your financial management. This section contains the salient fees that are waiting to be charged to you.
These fees include the annual fees, closure fees, late fees and overseas transaction fees.
The annual fee can be avoided if you pay your bills on time and if the company terms state so. Better yet, find a credit card provider which values promptness in payment.
The closure fee is the charge when you are to close your account. Imagine this fee that you will still have to pay right before you leave the company? Subsequently, this is done to keep their clients, but as a client, you should have the freedom to close an account anytime when you have settled your accounts and when you are no longer satisfied with the service. So better actually ask the credit provider if they charge this fee before you sign up your application.
The late fee is of course the charge when you don't meet your due date. At least this one, you are charged because of overdue and it is mostly your fault.
The point here is that you have to read between the lines of the credit offers.
The overseas transaction fee is charged when you use your credit card abroad. This used to be a 1% fee by Visa and MasterCard. Later, because the providers want to profit more, it has increased to pin another one or two percent.
Related Tags: money, debt, finance, self help, credit cards, credit, business, credit score, savings, bills, checks
Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are