What To Know While Choosing A New Credit Card
Wednesday, October 16, 2019, 6:00 AM | Leave Comment
Credit cards have been more like a relief to a lot of people who have tight hands over the pockets.
Sometimes, we need to buy certain things but do not have enough money at the moment to commence the purchase.
Therefore, the role of a credit card comes in. It is like a loan you take from the bank that you repay by the end of its due date.
Surely, credit cards have made life more comfortable and smooth for people, but on the other hand, it can be inflicted if not appropriately used. So, how do you know which credit card is best for you?
Here are ways through which you can figure out aspects so as to compare credit cards and pick the most suitable one.
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Interest rate
In a credit card, interest rates are applied, which are imposed either monthly or annually based on the type of card you carry. These interest rates can alter from company to company as well as vary according to the selected plan. The credit card pack depends upon your monthly income and if you are eligible to clear the dues by the date.
There are mainly two types of interest rates — fixed and fluctuating. The fixed-rate is majorly annual, while the fluctuating one varies from month to month. Fixed interest rates can change at times when you lack the payment of your card on time or exceeding the credit limit with fees and penalties.
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Credit limit
The credit limit is an essential aspect to contemplate while getting a new credit card. In this world, where competition is so high, companies come up with different and exciting offers to attract customers. They tend to put forward various credit limit options in front of you to choose from that suits best with your income.
One must be careful with the credit extents since companies will obviously try to get you the highest offers, but you must consider the limits that your pocket allows. Otherwise, you might just end up getting stuck in debt.
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Fee and penalties
With every benefit comes a loophole. While the credit card companies provide you with the best offers and services, it also comes with various fees and penalties that you might not be aware of in the beginning. Every transaction done from a credit card takes charge from your account, and prices may differ from company to company.
They charge you some penalty fee if you exceed the card limit or pay the due after the due date has passed. Therefore, find providers that procure reasonable charges over your transaction actions. Always be mindful of the hidden terms and conditions of credit cards before choosing them.
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Incentives
To keep the customers happy with the service, many credit card companies facilitate points on every transaction you make. When you have enough reward points, you can use them in your next purchase, of which the company charges no transaction fee.
Every provider has its way and terms to reward points; therefore, before getting a new credit card, also have a look at various offers it has for the customers.
