Important Guidelines To Choosing Your Credit Card

This article is about Important Guidelines To Choosing Your Credit Card. When it comes to choosing the right credit card to suit your financial needs, there are plenty of DOs and DON’Ts. Credit card companies are plenty and all of them offer their clients various benefits and advantages, but it is choosing the right one that can be perplexing.

Important Guidelines To Choosing Your Credit Card

The first thing you have to do is to upgrade your basic knowledge about credit cards. Find out all you can about the credit card business, companies, their fees, repayment schedules, APRs (annual percentage rates), liabilities and others by visiting credit card company websites and other finance sites on the internet.

The basic tips for finding the best credit card for you would be:

* Get a credit card that has no annual fee

* At least 20 to 25 days grace period

* A $0 fraud liability (which is absolutely necessary in this day and age when there are so many cases of identity theft)

* The lowest APR you are qualified for. (Of course this is not important if you plan to pay your balance fully every month because in that case you do not pay interest)

* Rewards – like cash back, rebates, etc that can save you money if you pay your balance every month.

It is estimated that the average American household carries over $9000 in credit card debt with an average of 16.5% interest rates on their credit cards that amounts to a horrifying $1500 a year in finance charges alone. It is beneficial if you lower the interest rate on your credit card balance. This will help you to get back hundreds of dollars. Try your best to get a good and better deal with your credit card company. Competition between credit card companies makes them do all they can to keep customers happy and satisfied, so use this to your full advantage.

Start comparing the offers of other companies, and their interest rates, and if those are lower than what you are paying your current company then call them and let them know that you are getting better deals elsewhere. Nine times out of ten, they will want you to stay with them and lower their rates. This research should be done even before you sign up with a credit card company.

Before you choose your credit card, make sure you take a close and honest look at your money management habits. If you are the type of person to pay off the balance at the end of every month then you can shop for a credit card that has a low APR (annual percentage rate). A fixed low rate will guarantee that the rate will not change but will stay low. Many times the introductory offer rate when you sign up is low and this will increase drastically in the future months.

The only thing about a fixed rate is that it is usually accompanied by an annual fee so you will have to check and see that the lower interest rate is worth the final cost of the annual fee. Anyway, if you are the type to pay off your card regularly at the end of each month then you do not have to worry about the low APR or even the yearly fee. However, make sure you do get a grace period.

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