With all of the credit card account offers floating around today, how is one to decide which offer best fits their individual needs? Most charge cards today are designed to be used by a certain types of cardholders, and in order to get the full benefit from any given credit card you will need to pick the one that best fits your own personal needs.
I know that this process can be difficult and sometimes seem overwhelming, but this article is designed to point out what you need to look for when deciding which credit card is right for you.
• Introductory Rate
Most credit cards offer a special introductory rate for a specified time period when you sign up for the credit card. The usual intro offer you will see is for a 0% interest rate on purchases and balance transfers. Although most of the deals will look similar, you will want to pay special attention to the length of this introductory offer.
Some charge card accounts only offer this special rate for the first 3 or 6 months, but if you look around you will find some cards that offer the intro rate for the first 12 months that you own the credit card. When comparing cards, you should consider the ones that offer the lowest intro rate for the longest time period.
• Interest Rate
After analyzing the intro rate, you will want to look at what the interest rate will be for the life of the credit card account. This number can vary from credit card to credit card so you will want to make sure that you compare a few cards to find the most competitive rate.
The most important thing to look for when reviewing the interest rate is to check to see if the interest rate is variable or fixed for the life of the credit card. A variable interest rate can change over time, and this is not ideal because your interest rate can start of at a competitive rate and end up rising to a very high rate over time.
You will want to make sure that you are not signing up for what you believe to be a low interest rate card, only to find out later that the interest rate is variable, and will go up in the future. When possible, you will want to find a charge card that offers a fixed interest rate.
• Fees
Some credit card accounts will charge an initial setup fee and/or an annual fee for using the card. Whether to apply for and to carry a card with such fees can be a tricky decision, because some of the cards that charge an annual fee may offer a low, fixed interest rate, or allow you to participate in an exceptional rewards program.
Card features such as these can make the fee worth your while. To make the decision on whether or not the fee is worth paying, you will have to compare the card with similar credit cards that do not charge fees, and examine the extra benefits of the card that charges the fee.
If the card with the fee offers a better rewards program that you plan to participate in, or has a lower interest rate then the fee may be worth paying.
We hope the information above helps, stay tuned for the second part of this article which will have more information and tips that will be very useful for all of your needs.
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Tags: charge cards, credit card debt, credit cards, Finance, personal finance
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