The need for credit card and its role in organising your finances is indisputable. And although the life is definitely made easier with using credit cards as a payment device, choosing the right card for your life style and needs is not so easy. Every type of credit card has its own particular purpose and is intended for a certain kind of population. Once you actually indentify your needs, the credit card will actually pick you instead of the other way around.
There are couple of things to consider when selecting the card. The very first thing is watching the interest rate. This category refers to the following questions: the actual amount of the interest rate, the period throughout the rate is meant to be paid, and the variability of the interest rate. One needs to be familiar to the operational system of the card companies that often introduce the lower rates in the initial stages, which does not mean that the same rate will be maintained. Deciding between the variable and fixed rates will depend on you income flow and economic stability. If your income changes periodically than perhaps opting for fixed rates may be a better idea.
The other important thing to enquire into would be annual leave. This is something likely to be disregarded after calculating the interest rate. More exclusive subtypes of major credit cards have high maintenance fees that can amount to hundreds and even thousands of dollars. There are of course types of card that have no annual fee what so ever and they are primarily designed for students. The existence of the annual fee will of course influence the potential of range of use of the credit card.
Credit limit of the credit card will most likely be determined according to one’s responsibility, life style and habits. It is very important to be careful not to abuse the credit card and cross the limit. The payment terms that the issuer offers are usually fixed and caution is always advised.
Reading the fine print should be the rule when it comes to all the paperwork and only the credit cards. Getting yourself acquainted with all of the regulations regarding the credit card usage can only be achieved by reading the fine print. That way you will not be facing any unpleasant surprises.
Lastly, it is always advised to choose the card that has longer grace period. The grace period is actually the time between the purchase and the start of interest accumulation. The credit cards that start with interest charges from the moment you performer a purchase should be avoided since they are very difficult to pay off. The most convenient cards allow for 3 weeks to pass before the interest starts to accrue, which means that you can save money.
After considering all of the above, some additional advising and guidance from your bank is always advised, since there is always a need for certain clarification. And since they have access to all of the transaction records, they will be able to advise you accordingly.