Why do you need credit cards? What is the purpose of having a
major credit card? Can I control my spending if I apply for a
major credit card? Notice this piece started out with questions,
which I feel are three of the most important question anyone
should ask, seeking a credit card. If you do not ask these
questions before a applying for a credit card, guess what you
will be saying later. Why did I apply for a credit card? What
was my purpose? I wish I could have controlled my spending. This
may or may not happen, but if you are searching for a credit
card, you may want to ask your self-first, why you need a credit
card.
Credit cards include Visa, MasterCard, Citi Cards, HSBC cards,
American Express, and other types of cards. If you are searching
for a credit card, you will need to understand what companies
manufacture the credit cards, since some companies are
replicating, taking people for a ride. You will also need to
know the difference between Fixed Rate cards and Variable Rate
cards. The Fixed Rate cards rarely change their APR, which is
very important, while the Variable Rates are subject to change
anytime they feel needed. The APR or Annual Percentage Rates are
often steep on most credit cards anyway, but for the most part
you will need to learn the difference between Variables and
Fixed to avoid extra charges.
APR rates can start at 9.99% up to 17.99% and sometimes higher.
It depends on your situation, but for the most part many card
offers have the same rates. If you have no credit then you
really need to research the marketplace carefully, since most
card providers will consider you a risk. If you have bad credit,
you will also need to search the marketplace carefully, since
most cards for high-risk consumers have high upfront fees, plus
high APR, and other fees.
The grace period is ESSENTAIL, since if you go over the grace
period you are subject to additional charges. The grace period
can extend to '25' days, sometimes 20 days, and rarely more than
30 days. If you find a card with low interest rates and fees,
with a grace period of 30 days, then hop on it. You are the
lucky one, since these cards are next to impossible to get.
Annual rates are also important, simply because some card
providers charge nominal fees for providing the card to the
client. Many cards offer 0% APR and no annual fees. Be carefully
that you read the Terms & Conditions carefully, since companies
are on the marketplace misleading millions.
Balance Transferring is another issue you want to compare and
consider. The transfers can run into high charges if you are not
careful. Again, you want to remember your purpose of getting a
credit card in the first place, and if that purpose is to
provide you security, then the balance transfer is part of that
purpose to consider. Some companies charge high APR on balance
transferring.
Statements You will also need to keep track of your statement if
you are accepted for a credit card. The statement is important
since it will show you the balance, APR, and any other details
relative to your dues. If you notice any wrongful activity, it
is important to file a report against the card providers
immediately.
Limits There are limits on credit cards. This is another area
you want to be careful, since if you go beyond the cards limit,
then you are subject to pay charges. Most credit card companies
are like anyone else in the world, they are out to make profit.
If you feel you have gone over your limit, be prepared to pay,
since many companies will not allow room for time.
Late Charges Credit card providers also charge 'late fees'
against credit cards. If you feel you cannot make the full
payment on time, try to at least make the minimal payment. The
minimal payment will save you from late charges, but it will not
save you from additional charges, known as APR.
About the author:
Tony Robinson is a careful and experienced credit card user, He
is also a Webmaster and International Author. Check out his
credit card tips at
http://www.ezy-credit-card.com/
