Getting your own credit card is not as easy as you may think. Applying for a credit card account needs a lot of thinking. You also need to compare rates and hidden charges credit card companies add.
Before marching down to your credit card agent, ask yourself some questions like do you want to pay off the credit card balance every month or carry a balance instead? The type of credit line limit is also to be taken into consideration. Credit cards offer a lot of benefit packages, think of the package that would suit your needs.
If you want to carry a monthly balance, look for the credit card that offers the best interest rate or a low or no annual fee offer. However, if you intend to pay the credit balance every month, then look on the one that offers the lowest interest rate and low annual fee.
Credit limit determines how far you can go with your card. Think of the lowest limit that would fit your needs, not your lifestyle. Remember it's supposed to be for necessities and not for luxury. Adding 30% to the limit you agreed on. This will maximize the value of the card. Meaning, you can use the card on a normal basis and still have enough value if an emergency arises.
Credit card companies offer tremendous bonuses on their cards. If you wanted to sign up for these packages, think, think, and think! Will they really be of help to you or are they just there to make your credit life miserable?
Of course the table is laden with different courses. You are only to get one so don't rush into one that looks good. You always have the liberty of comparing one credit card to another. This always a good idea. Do your homework.
Always choose the credit card that offers the lowest annual percentage rate (APR). APR's could either be a "fixed" or a "variable" rate. Fixed rates do not change as the name implies but is higher. Variable rates changes depending on the economic trends. This is to be taken into consideration if you're deciding on carrying a balance. Remember, the Feds have been raising the prime rate ΒΌ point for the past six months. This will eventually affect you rate and your payment.
Some credit cards offer a grace period of 25 days before they charge the interest on the purchase. But some may not have a grace period. Look for those that have one and the longer the grace period, the better the deal. Most credit cards today charge a late fee if your payment is not received on the due date. This fee can be as much as $35 and can get very expensive if you continue to make late payments. Remember, if you mail your payment it must be in the credit companies morning mail box and credited to your account by 3PM.
You also have to check on other fees attached to the credit card. These are the penalty rates as well as other charges like over the limit charges and late payment charges as discussed above.
When choosing a card, always remember to get the one that would best fit your needs and at the same time the best deal you could get out of it.
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