Friday, August 26, 2011, AM | Leave Comment
Before finding the right credit card, you will need to determine how you will use it and what factors are important to you. Don’t just apply for a credit card when you receive an application in the mail. Read the fine print. Consider the following how you will use your credit card:
Carry over balance
If you generally carry over a balance, you will need a credit card with a lower interest rate, more specifically, lower Annual Percentage Rate (APR).
Pay full by due date
If you pay off your bill every month in full by the due date, you might get a card that offers a slightly longer grace period so you have more time to pay your bills.
If you use your card always and for everything, apply for a card that will give you rewards such as air miles or other points for spending. A better card for that purpose is American Express Card.
If you use your card occasionally – not very often – you will certainly want one that does not charge an annual fee.
Pay bills late
If you constantly pay your bills late, you will want to find a card that has the lowest late fees.
If you are planning to make a big purchase – tuition fee, or down payment on a car, you will need a card with a generous credit limit.
If you are looking to transfer balances, you will want a card that provides a low APR and low associated fees.
This is too expensive. You will not find a credit card that would charge a lower APR. Don’t go for it.