Credit cards are some of the best things modern living ever gave us. And we love every advantage it provides. Then again, not all credit cards are the same, and if you want one that will indeed be an asset to you instead of a liability, you have to go over the details.
When shopping for a credit card, here are the most crucial points to consider:
Annual Percentage Rate (APR)
The APR is the cost of using the card if you don't pay off your entire balance off every month. Different cards have different APRs so it's wise to spend time comparing them. Of course, there are other things to compare when choosing a credit card, such as fees and incentives.
Minimum Repayment
This is the smallest amount you need to pay - usually about 3% or a certain amount set by the company, whichever is higher - if you don't clear your balance every month.
Annual Fee
There are companies that collect a yearly fee simply for using their cards. This amount is added to your total amount due and will also accumulate interest along with your spending, unless you pay your whole balance off.
Charges
Review the credit agreement to see what other charges you will paying, such as charges for late payments or charges for exceeding your credit limit.
Introductory Interest Rates
This is where you begin paying minimal interest or none at all. The rate then rises after a specific period of time, such as six months since card issuance or from a particular date. Balance transfers typically come with an introductory rate. When comparing cards, check up to when the introductory rate applies and what interest rate it changes into when the introductory period lapses. Find the right credit card when you follow the link.
Loyalty Points or Rewards
Loyalty points or rewards add up proportionately with your spending and may be used to make purchases, sometimes this is specific stores. See how and where you can use these perks and how useful they might be to you. Be excited to our most important info about CardGuru rewards.
Cash Back
Finally, cash back is the money that will be refunded to you, depending on your spending, but not everyone is qualified. For instance, it may apply only if you pay your balance in full monthly. An even better deal might be a cheaper interest.
As you can see, you can't just pick any card you want. You have to take important things into account to ensure that the card or cards you choose will actually be helpful as they are designed to be. Learn more about best credit cards at https://www.huffingtonpost.com/nerdwallet/how-to-pick-the-best-cred_b_8562104.html.