Applying For A Credit Card – Choosing The Right One

By Gerald Napier

There are different choices for credit cards namely 0% balance transfer credit cards, cash back credit cards, 0% APR credit cards, and travel reward credit cards. Selecting the right card for the way you use your credit card can mean a big difference in your pocketbook. To help you spot the differences in your credit card offers, use this quick guide.

Determine if you will carry a balance every month or almost every month. If so, a lower interest rate is better for you. You will save even more if you transfer a high balance credit card to a lower or 0% APR credit card (often an introductory period).

Determine if you will be paying the credit card balance off every month. Then you will want to apply for a credit card without an annual fee. Even though finance charges may be higher, you won’t be charged since you pay the balance off every month. Look for credit cards that offer grace periods, usually between 25 to 30 days, before credit interest begins.

Will you be shopping for credit card balance transfer? Be sure to check out the transaction fees and the introductory periods. Occasionally your credit card company will offer you a credit card debt consolidation with convenience checks so that you can transfer one or more credit card balances, but be sure to check out the transfer guidelines.

Do you think you will need cash advances? Applying for a credit card that offers a lower APR and lower transaction fees is a good option. Make sure that you read the fine print on their requirements. In some credit companies, a transaction fee and a cash advance fee plus the interest rate are imposed. A higher rate for cash advances than regular purchases are charged by some credit cards.

Determine if you will be traveling frequently and charging your trip expenses. A cash back credit card reward program may be the best option for you if this is your situation. But first, be sure to consider your interest rate. Your spending habits and the cost of the credit card itself should come first and rewards should come second. A cash back refund at the end of the year is what credit rebate cards will offer and you can use this anyway you want. Other credit card reward programs offer purchase points or redeemable rebates. Offering you miles as credit for every dollar you spend are airline credit cards and there are times when you are offered double or triple miles.

Regardless of the credit card offer you apply for, careful consideration of the terms of your credit card is a must such as interest rate (APR), annual fees, transaction fees and balance transfer fees. Those hidden charges can add up quickly and cost you more than what you bargained for, so choose your credit card wisely.

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Topics: Finance | Comments Off

Tags: banking, Credit, credit cards, Debt Consolidation, Debt Relief, Finance, finance and banking, Finance and Credit, Finance and Loans, financial planning, Loans, Personal Finance, Wealth Building

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