Looking For A Reliable And Good Credit Card?
When looking for a good credit card to add to your wallet, there are many factors that you should focus on. One is the actual cost involved in using the credit card. The other factor is any rewards associated with use of the credit card.
Keeping these two factors in mind, the search for the right credit card for you will be much easier, and you will end up in a better financial position than you started in. There are a few ways in which using a credit card can cost you money. Of course, if you plan on carrying a balance on your new credit card from month to month, one of your primary concerns will be the interest rate that the credit card you are applying for charges. Is it a fixed rate? Is it variable? Do the credit card’s terms allow the interest rate to be raised at any time, or do you have a guaranteed rate locked in for a certain time period? Many credit cards offer very low or even zero percent “teaser” rates for a short period, and then will raise your rates after this period expires. Some cards offer zero percent or a very low rate for longer periods of time, so if your credit is qualified enough, these cards should be your first choice. Look for a card that offers zero percent interest on purchases for your first six to twelve months. Capital One, Citibank, and Chase offer cards for some of their new credit card customers that have these types of terms, so you may want to contact them.
Another factor of applying for a new credit card that can cost you money is an annual fee. Some credit cards have no annual fee, while others can charge hundreds of dollars per year. Be sure you know the annual fee requirements for any card you are applying to. If you apply for a credit card and then find out you are subject to an annual fee, call the credit card company and ask if they can lower or waive the fee for you. In general, there are plenty of credit cards with no annual fee out there if you have decent credit, so you should focus on those unless you are unable to qualify for a credit card without an annual fee. If you must, try to keep the annual fee as low as possible.
Finally, check to see if the credit card program you are applying to offers any rewards points or frequent flyer miles for purchases. If you use your card a lot, these can add up quickly and are worth the effort to shop around for.
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Finding A Good Credit Card
Not all credit cards offer the best features and rates. One must look at the terms and conditions carefully when selecting a credit card. The following characteristics comprise a good credit card.
No Annual Fees
Most credit cards do not require annual fees. That is because the credit card companies make a significant amount of their money off of credit card balances. Make certain that you choose a credit card with no annual fees.
Grace Period
Make certain your credit card has a reasonable grace period between payments. The shorter the time period, the more likely you’ll have interest rate payments (unless you pay off your balance monthly). Regardless, if the grace period is shorter, you have less access to cash flow for other purposes.
APR
The Annual Percentage rate should be as low as possibly offered. This is the interest rate you’ll be charged on any balances that you carry. An important thing to note is that the APR will be different for purchases, cash advances, and balance transfers. Cash advances typically have the highest rate, so if you use your credit card frequently for this purpose, you may want to review the terms and conditions closely for this feature. As it pertains to balance transfers, many credit cards offer introductory low APR transfers within the first few months of obtaining the credit card. If you can pay off this balance within the introductory period, than transferring balances may be appropriate for you. But be careful, because after the introductory rate, you may be charged a higher fee than what you’re paying today. Once again, please review the terms and conditions of the credit card. In addition, there are fixed APR rates and variable APR rates. In a rising interest rate environment, which we may be in the future, then one’s carrying balance will incur more interest charges. With fixed APR charges, you’ll be charged the same rate on your balances.
Incentives
This is a truly valuable feature credit card company’s offer. One can get brand specific credit cards and earn points on future purchases, such as Ford and Disney. By using a Disney credit card, one can accumulate points to be used at Disneyland or Disneyworld for vacations. There are many variety of incentives, which include cash back on purchases, educational donations (through Fidelity 529 plans), or earning miles to travel. These incentives are nice features which give you an extra incentive to utilize the credit card.
In summary, all of the above features should be examined carefully when selecting a credit card.
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