While choosing the best credit card, you need to keep in mind some important factors regarding your style and conditions which will in return help you in enjoys its benefits. Overflowing offers from credit card companies is a regular incident in your life. Those cards usually offer a very low rate of interest or a huge credit limit which may seem very appealing at a first glance. But choosing a wrong card could land you among the jungle of nuisance fees and inflating interest rates.
There are different types of credit, different source of credit and different prices for credit. If you know the differences, it literally pays you.
Here I have tried to explain the basics of credit cards, its verities and also the best deal which can protect your rights.
• Credit cards are very convenient to use in daily life. But you may have to pay a price for this convenience if you are not aware of the actual fees and rates your card issuer is charging. Annual charges of a run-of-the-mill Visa or Master card can go up to $20 and as much as $80 for a gold card. As card issuers have now days shown willingness to drop the annual fees for selected customers they want to keep, you can go asking them for a fee waiver if you think the fee is getting too high for you. Your other charges include interest on cash advances, late-payment fee, and a fee for exceeding your credit limit.
• You must choose a credit card which suites your style. A bad choice could mean paying more fees or a high rate of interest than you need to. If you want to carry a balance every or almost every month then a lower monthly interest rates will be more important than the annual fees. The best deals on standard cards come with variable rate of interest, which are generally tied to the banks prime rate. Now if you want to pay off your balances every month then you should go for a card without an annual fee as there will be no charge if you pay off your balance before the end of the month. Remember whatever may be your style is, you will be charged interest and possibly extra fees for all those cash advances.
• Credit card business is competitive business so there are lots good offer waiting for you. Thus, if you are not satisfied with the terms and conditions your card company is offering, you may be able to find a better plan elsewhere.
• Alternatives: Charge cards and Debit cards. Charge cards travel and entertainment cards, cards like American Express GOLD and GREEN card and Diners club are charge cards. You generally got penalized if don’t pay their bill in full within a specified time period. These are not very good alternatives to a credit card as the membership fees for this cards are very high and services offered by them are generally available with credit cards. On the other hand when you use a debit card the amount of your purchase is deducted from your checking account or from some other designated account. It is helpful to use debit card because of its paperless check that clears immediately and with no grace period.
