Extensive use of credit cards has brought about different features, offers, and charges from many credit card companies. This makes it more difficult to choose which particular credit card to purchase. Oftentimes, people grab the chance of introductory offers having very low interest rates only to find out later that they are stuck with a card having a very high interest.
So before making any decision, the first thing that you should consider is your needs. Ask yourself how you will use the card, the credit card type, and the most common denominator, the interest.
Determining how you are going to use the credit card is important because you can assess your needs. There are people who use credit cards for convenient spending, while others use it for short term or long term borrowing. There are also those who are in the habit of making very large purchases by using a credit card.
Credit account is of three types, which is contained in a revolving agreement, charge agreement, and an installment agreement. It would be wise if you can contact a financial advisor before choosing which credit card type to get.
The next thing to consider is the interest. You can choose between a credit card having a low APR and a credit card bearing a low interest rate.
It not surprising that many companies offer introductory rates which are quite low, but this lasts for only about six months. As a prospective client, you should be aware that low rates are offered simply to attract you and other people as customers.
Low APR’s are usually offered to people who want to make a balance transfer. When used unnecessarily, you will only end up with a huge bill at the end of the month. However, if you want to save money, make sure that you pay off all your remaining balance on or before the expiration of the introductory rate.
If you want a low APR card, you should not settle in making minimum monthly payments because it will take decades before you actually pay your debt.
The best solution is to have self discipline. You have to live with what you have, and incase you incur debts; you have to devise a plan on how to become debt-free again. Having a lot of debts is not good because it is a reflection of your personality. Most people will view you as an irresponsible person. Besides, you will have trouble in making credit card applications if you have a bad credit rating.
If you are currently stuck with a credit card having very high interest rates, low APR cards is the best option for you. And after making a balance transfer, you should think twice in making unnecessary spending. The best way is to pay off all your balances from your previous card, and after doing so, you can now enjoy the benefits of your new low APR card.
Double check how long introductory rates are applicable so that you can have a better picture of how you are going to settle the balance before the grace period ends.
Having a credit card makes our lives more convenient. It provides us a lot of advantages, but it also comes with great responsibility. Credit card issuers are confident that you can also meet their demands, so be responsible in everything you do.