Tips on Choosing the Perfect Credit Card
There are thousands of credit cards available on the market today. This means that you must be extremely careful when signing up for one to ensure that you settle for what exactly meets your preferences. To ensure that you get the best credit card for your particular financial needs, consider the following factors.
Your Spending Habits
Before you even start analyzing the different cards, look at your spending habits. How will use this card? Will you manage to pay for it every month? Under what circumstances will you use it? These are crucial questions that determine you usage and a card thus suits your lifestyle. For example, if you plan to use it for all payments then consider one with a high credit limit and plenty of rewards.
The annual percentage rate can be fixed or variable. Both of these options have their benefits and shortcomings, but again your spending habits can guide you here. If you anticipate that there are months when you may fall behind or go over the limit, then a fixed one will do. However, you still have to compare APR for different cards for the best deal.
Fees and Penalties
Credit card issuers have numerous ways of making money off you and imposing fees and penalties is one sure way. Common charges include late payment fees, transaction fees and charges for exceeding the credit limit. While these charges and fees are necessary, they should not be exorbitant. Therefore, look for a cvv shop with reasonable fees and zero transaction charges. You should also not pay extra for reward programs.
How Balance Is Calculated
Credit card issuers have two main ways of computing balance. Some use the average daily technique while some do so using two billing cycles. In most cases, using two billing cycles is expensive and thus, look for a card provider who uses the daily average method.
Reward programs are meant to induce customers to use credit cards. Ensure that you are not charged extra for these rewards. Apart from that, look for an incentive program that is flexible. Here, flexibility means things like cash or rewards that you can use for travel or anything else that is convenient for you. You should also find out if rewards expire and if they have a limit.
How much money can you borrow on the credit card? Normally, this value can range from a few hundred dollars to several thousands depending on your credit history. Knowing this limit can help you avoid situations where you are almost maxing because that hurts your credit score. Furthermore, there is always a penalty should you go over the limit. As a result, look at how much you think you will be spending and ensure the card can cover that sufficiently.
Going for a credit card is a huge commitment. Therefore, you must take your time to find the ideal one to avoid running into many issues with the provider. Luckily, working with these guidelines can help you with that.