If you are like me, your mailbox is probably overflowing with credit card offers. Even if you need a credit card, it can be difficult deciding which one would be the best card for your needs. Believe me, all credit cards are not created equal. Some carry ridiculous annual fees, service charges, and other hidden costs. Deciding upon a good card for your basic needs can be hard if you aren’t careful to read the fine print.
APR, or annual percentage rate, is figured pretty much the same way by all financial institutions, depending upon the rate they charge. It is important that you find out exactly what APR the credit card is going to use before accepting their offer. Compare it with the APR from other card offers to determine who has the lowest one available.
The APR should not be your only consideration, however, when deciding upon a credit card. There are other things to consider, such as annual fees, monthly membership fees, subscription fees, and other service charges.
Your best cards will not charge annual or monthly membership fees but some may require that you pay subscription fees. You also need to read the other terms of the card offer, such as how long you have to pay the balance before interest accrues (grace period), whether or not you will be charged fees if you don’t use the card, and if you will be charged fees for going over the credit limit. Find out if the company plans to raise your APR if you are late with one or two payments and if they might be willing to offer you a lower rate in the future as a reward for making timely payments.
Check the information that comes with the credit offer very carefully and if it doesn’t answer all of your questions, then call the company. Sometimes they may omit information as an oversight and other times they may be hoping you won’t ask. Ask anyway because it is your money that will be paying these bills if you decide to accept the card offer.
Once you have narrowed your decision down to two or three of the best offers, then compare those few again, taking note of the APR, annual fee, monthly membership fee, grace period for interest-free payments, and other details as mentioned above. Decide upon the best card for your needs, taking everything into consideration very carefully.
There is no harm in carrying a credit card as long as you use it wisely and don’t get yourself in debt. Credit cards are very useful to have when faced with emergencies and large purchases. They are necessary when performing some transactions, such as shopping online, renting cars, or reserving motel rooms. As long as you choose your card carefully, pay as much towards the balance as possible each month, and use the card sparingly, you should be able to come out on top.