CHOOSING YOUR CREDIT CARD

It is no secret that there are many credit cards out there. The one you choose however, should align with your lifestyle and your ideal spending habits. If you intend to get a credit card from a good company, and get the best possible deal, you’ll obviously need to research a bit to identify the one that would probably work out to be the best one for you.

One of the primary things to identify when choosing a credit card is establishing why you need one in the first place. A few people choose to get a credit card for cash flow purposes. Their approach is to make purchases and buy things with a credit card, leaving their paycheck and other income in their bank account to draw interest. Using this approach, their money tends to grow while they continue to buy the things they need. At the end of the month, they simply pay their bill and clear out all their debt.

A few others may opt to get a credit card and use it for instant cash purposes. This way, they can withdraw instant cash at an ATM using their credit card. This would be a great option for traveling or going on a long and extended vacation as it saves the hassle of carrying cash around and also helps them obtain foreign currency when traveling internationally. If you need a credit card for a similar purpose, you should look for one that has the lowest rate possible for instant cash transactions.

When using a credit card, you’ll need to plan ahead about the payments. You’ll need to decide if you want to pay the full balance at the end of each month, or pay only the required amount. When choosing a credit card, you should also look at the introductory rates, balance transfer rates, and other offers that may apply if you are getting a credit card for the first time or if you are getting a new card. Some comapnies would offer you truly amazing deals, especially if you have a good credit history.

Another important aspect to consider when choosing your credit card is the incentives. There are many cards available in the market that will give you incentives, such as reward points and even cash back with purchases that you can use towards paying back what you owe. There are several kinds of incentives being offered with credit cards, all you have to do is take the time to shop around and compare.

The most important area you’ll need to look at when comparing credit cards is the APR (Annual Percentage Rate). The APR is what you would pay for your purchases when the interest-free period runs out. APR rates usually vary among credit cards, so it is always in your best interest to compare and shop around and choose a card that offers the lowest APR and longest interest-free period. The lower APR rate you get and the longer the interest-free period, the better off you’ll be.

When choosing a credit card, you also need to pay attention to the minimum payment amount. While it is common for most minimum payment balances to start around 3%, some companies can accept a much lower minimum payment while others may tend to be quite a bit higher.

When you finally make a decision and choose a credit card, you should always ensure that you know exactly what you are getting. In general, it is great to have a credit card, but it can lead your finances down a rabbit hole if you don’t use them carefully. If you put some time and research into picking a right credit card, it would serve you well. Even if you start off with a lower credit limit, over a period of time, you’ll be able to help raise your credit limit and eventually be able to purchase even bigger things – such as a car or even a house, provided you pay your bills fully, on time – everytime!