Choosing the best credit cards in the industry is quite difficult. Credit card offers and credit card applications are everywhere and sometimes the credit card application is completely free too with bankers and tellers and even supermarkets trying to lure you into taking on as many credit cards as possible. But its not that easy; don’t take the very first application that comes your way. This is even more important if you have an account with a bank. Say, you have an account with Citibank and you are planning to get citibank credit cards for yourself and your wife just because paying off the card would be easier with your attached account. Very bad idea! Before you take on credit cards, take the time to check out these following points.
What kind of card is it?
There are many kinds of credit cards that are available for customers. When you have the credit card application, make sure that you read through it completely. Standard credit cards allow you to make a purchase up to a certain amount and have to be paid every month. Once the money is paid, the card becomes valid again. Premium credit cards offer incentives and benefits when they are used like cash-back, credit points, travel upgrades etc. Charge cards do not have a set spending limit but they have to be paid every month in full. Limited purpose cards can be used only in limited shops for shopping. Secured credit cards require a cash deposit or a fixed deposit that is placed on the card. Pre-paid cards have a limited amount already paid by the customer on the card that can be used. Make sure that you check the application and get the right card for your requirements.
What is the annual percentage rate?
Credit card interest rates are quite high. However, the rate differs from bank to bank and credit card to credit card. One point to note is that a higher ARP rate means a higher finance charge on your overall bill. Some cards charge different rates for purchases, billed amounts, cash advances etc.
What about the fees?
Each credit card will have fees that have to be paid for processing. For example, cards have fees like annual fees, renewal fees etc that are charged with interest rates. You might also have to pay for over the limit charges when you cross over. Please note that these fees are different for each credit card and they are subject to change at any time.
Where is the card accepted?
Usually credit cards are accepted at every location. However, cards issued by minor banks may be rejected due to interbank problems or government regulations. Make sure that you check before you apply for a card. Nowadays, most cards are global or international but do check.
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