Credit Cards: How to choose a credit card
Credit cards have become a part of life for most people living
in the western countries. It’s becoming increasingly impossible
to avoid them, especially for business men. So if it is the
first time you are seeking to enter into the world of plastic
money, here are some of the basic things you should look out for.
First, compare the interest chargeable for all the credit cards
for which you are eligible. While the rate may not remain fixed
indefinitely, it’s always advisable for first timers to go for
the one charging lower rates.
Read the fine print, especially on the other charges that may
be charged on you, like late-payment fees, annual fees, and
whether there is a grace period which is normally given before
the finance charges kick in.
Decide what limit is appropriate for a person of your income.
Also the fewer credit cards you have, the better placed you are
to track your spending.
Compare the services and other features such as the cash back
incentives, or warranties, rebates and the like.
Check whether the card is widely accepted to enable you to pay
for your needs.
You will do yourself a favor by familiarizing yourself with the
following terms.
Annual Percentage Rate. This is the measure of the yearly cost
of credit.
Finance Charges. These are the total charges involving the
transaction. This is the period the issuer gives you before he
starts charging you interest on new purchases. Note that not all
credit cards have a grace period.
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