With all of the credit-based card offers floating around today, how can one decide which offer best suits their individual needs? Most credit cards today are designed to be used by just certain types of cardholders, and to get the full benefit from a certain card; you will need to pick the one that best fits your own needs. I recognize that this process can be difficult and quite often seem overwhelming, but the information here is designed to point out what you need to hunt for when deciding which credit-based card is right for you.
o Preliminary Rate
Most credit cards present you with a special introductory rate for just a specified period when you enroll in the card. You will see the usual introductory supply for a 0% interest rate on purchases in addition to balance transfers. Although the vast majority of deals will look similar, it is advisable to pay special attention to the time of this introductory offer. Several credit cards only offer this specific rate for the first few or six months, but if you shop around, you will find some cards that offer the special introductory rate for the 1st 12 months you own the card. When you compare cards, you should consider the ones that provide you with the lowest introductory rate for that longest period.
o Interest
After analyzing the opening rate, you will want to look at the actual interest rate for the existence of the credit card. This amount can vary from card to be able to card, so you will want to make certain you compare a few cards to obtain the most competitive rate. The most important thing to watch out for when reviewing the interest level is to check to see if the interest is variable or repaired for the life of the credit card. A variable interest rate can alter over time, which is not best because your interest rate can start at a competitive rate and rise to a quite high rate over time. You will want to make certain you are not signing up for what you feel to be a low-interest-rate credit card, only to find out later the interest rate is variable and may go up in the future. When achievable, you will want to find a credit card that gives a fixed interest rate.
o Costs
Some credit cards will charge an initial setup fee and a fee for using the credit card. Applying for and bringing a card with these kinds of fees can be tricky because some cards that will charge an annual fee may offer low, fixed interest or allow you to participate in an excellent rewards program. Card capabilities such as these can make the particular fee worth your while. To decide on whether or not the fee is worth spending, you will have to compare the card together with similar cards that do certainly not charge fees and look at the extra benefits of the card that will charge the fee. If your card with the fee comes with a better rewards program you plan to participate in or possesses a lower interest rate; then the service charge may be worth paying.
o Gains
Every credit card offers many benefits. However, they are not all equal. Some benefits you can get through certain cards are special discounts, travel insurance, lost baggage insurance, rental car insurance, id theft insurance, purchases defense, and return protection, among other things. You will want to review the advantages of each card you are contrasting to find the card that offers the most effective benefits for your needs. For example, should you travel often, you may want to search for a credit card that offers you travel cover, lost luggage insurance, and rental car insurance since these benefits are services you could potentially take advantage of.
o Incentives
One of the best-kept secrets in credit cards is the special incentives available to cardholders. You will find perks for almost anything you want to purchase if you look in the proper place. These perks range from discounts on things such as rental cars, clothing, shoe, restaurants, and home theme, to give a few examples. These kinds of perks allow you to receive special discounts on products you may purchase using your credit card, but they have not been receiving the special
discounts because you were not aware of the way to take advantage of these offers. Many perks are available for the various credit card types that most cardholders carry, such as Visa, Master card, or American Express. Yet, there are also certain perks designed for specific cards as well. These kinds of credit card perks can be one of the better advantages of owning a credit card; thus, make sure that you take advantage of these special discounts when available.
o Returns
The most important factor you should consider when deciding on a credit card will be the rewards program from the card. Most credit cards permit you to participate in a rewards plan that allows you to earn points when coming up with purchases at participating suppliers. These points can then be applied towards discounts or free-of-charge products based on the specific card’s rewards plan.
Some of the numerous rewards plans are hotel, travel, gasoline, airline, auto, and procuring rewards. These programs are an easy way for you to earn discounts while you’re making normal purchases. If you stay at a particular hotel chain or take a flight on a certain airline often, you would benefit from having a credit card that offers rewards after you purchase from that retailer. This will permit you to earn points with your purchases and use people points for future deals.
Read also: How It All Started About Credit Cards
