18 Jan What to Look For When Choosing a Credit Card
When it comes to shopping for a credit card, everyone wants to choose the best plan with the best perks. However, it can be time-consuming and problematic. It is definitely easier said than done, but being informed for what to look for and being mindful is vital. With that said, here are some suggestions and aspects to search for when choosing a new credit card.
1. Low interest rate
Observing the interest rate for a particular card company is one of the most important features. Many card companies entice new customers by starting them off with lower introductory interest rates. However, these rates only last for a certain period of time. Therefore, be sure to find out how long it lasts, what the rate after the introductory period is, and if the rate is fixed or variable.
2. Long grace periods
Another specific to look for is grace periods. Everybody wants to be on time with their payments. Therefore, consider selecting a credit card offering a longer grace period. With longer grace periods, you can increase the time you have before your payment is due, before a late fee or interest is ordered.
3. A realistic credit card limit
Before choosing a credit limit, it is essential that you consider your responsibility and personality when it comes to money. If you are somebody with awful spending habits, set a lower limit based on all of your monthly expenses and fixed monthly bills. Maxing out your credit card limit can really hurt your credit score. So, make sure the limit you set satisfies these costs because money is not free!
4. No annual fees
Some credit card plans will have annual fees. However, many customers simply fail to remember because they have to pay interest. Since particular credit card plans have annual fees worth hundreds of dollars a month, choose a credit card without an annual fee. It will save you the money and stress!
5. Always read the fine print
Lastly, it is crucial to ALWAYS read the fine print before enrolling into a credit card plan. These credit card companies are persistently putting the most significant information in the smallest font. Whether it is about incentives, cutoff dates, penalty rates, transfer information, etc., remember to read this content very carefully. It may be a tedious task; however, the hidden agreements can haunt you later on.
By following all of these recommendations, it will help you to choose the best credit card plan that suits your overall needs. Just remember to always be on time with your payments in full, be vigilant when it comes to spending, and ask questions if you do not understand something in the fine print.
Good luck and build up that credit score for the future!
(Photo credit: FinanceNet.org)