How Do I Choose The Right Credit Card?

The article gives some basic information on How Do I Choose The Right Credit Card? Today there are hundreds of credit card companies vying for your attention. What is important is to find a credit card that fits your method/lifestyle and pattern of paying and spending money. It does not pay to get fooled by the advertisement, offers and gimmicks. While choosing the right credit card it all boils down to how much you know about the credit card business and how honest you are about your money habits.

How Do I Choose The Right Credit Card

Today it is very easy to find all the information you need on the net. Browsing and navigating the pages of a credit card company website is easy, and it will upgrade your basic knowledge. It is easy to use a credit card – all you have to do is reach into your hip pocket, pull out your wallet, pick a card and SWIPE! It is choosing the right credit card that makes all the difference to your financial situation.

Your money management/handling habits are important. If you are the type of person to carry a balance from one month to another then you should look for a credit card with a low APR (annual percentage rate). Sometimes the companies offer a fixed low rate that guarantees a rate that will stay low and not change.

But very often these low rates are introductory rates that will increase in the future and will be accompanied by an annual fee. If you are the type who pays off the balance every month then you do not have to worry about the low APR and you won’t be using it. There may also be no annual fee in this case.

You have to nevertheless always make sure you get a credit card with a grace period. This grace period allows you to pay your bill every month without “finance charges”/ Credit cards that do not have the grace period start charging the interest on your purchases the moment you buy them.

If you are going to need cash advances then you have to remember that most credit cards charge interest (sometimes at higher rates) for cash advances without a grace period even if there is such a grace period for your purchases.

You need to first decide how reliable you are going to be when it concerns making timely payments and keeping under the credit card limit. If you are the person who is often late in paying bills or you have no knowledge of your credit balance, then look out for transaction fees and other charges like late fees and over-the-limit fees that are charged by credit companies. These can be a great burden on you so it is best if you pay up on time and find a card with lower charges.

It is important to know whether you are a person who uses a credit card occasionally, rarely, frequently or regularly. If you are in the habit of using your cards for everything instead of checks or cash, then you must look out for credit card protection so that you will not be responsible for any purchases you make if you lose your credit card or it gets stolen.

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