There are so many credit cards to choose from that it can be hard to figure out which one to get. Why is one offer better than the hundreds you've already seen? Here are the answers to the seven most-asked questions about finding the right credit card.
There are so many credit cards to choose from that it can be hard to figure out which one to get. Why is one offer better than the hundreds you've already seen? Here are the seven most-asked questions about finding the right credit card:
- Are You a Student?
If you are a student, you should get a student card. Your application will probably be accepted with no trouble. Before you do anything else, you should talk to the bank where your student account is.
- Are you moving a balance from one credit card to another?
If so, you should look for a credit card that has a low APR on balance transfers. Annual Percentage Rate is what APR stands for. APR is the cost of credit shown as an interest rate per year. But be wary of credit card offers that say the interest rate will be 0% for the first 6 to 9 months. There may be some kind of catch!
- Do you want to buy something new and big?
If so, pay more attention to the APR for purchases, which is usually very different from the APR for balance transfers. You should also look at how long you have before you have to start paying interest on your purchases with each card.
A free period, also called a "grace period," is a set amount of time when you don't have to pay interest on your balance. After that time, you have to start paying off your balance. If you don't have a grace period, the card issuer may charge you a finance fee as soon as you use your card or as soon as each transaction shows up on your account. If your card has a grace period, the issuer sends you your bill at least 14 days before it's due. This gives you time to pay.
- Do you pay off your whole balance each month?
If you have a lot of money or only keep a credit card for emergencies, you might just pay off the whole balance every time you get a bill. If you do, you don't have to worry much about the interest rate, since you won't be paying any (but make sure there's a grace period).
- Should you think about other costs?
Many issuers charge annual fees to join or take part. Some card issuers will charge you a fee if you get a cash advance, pay late, or go over your credit limit. Some charge a fee every month, whether you use the card or not.
Need good customer service from the bank that's giving out the card?
This can be very important, especially if you lose your card or want to dispute a charge. You want friendly and helpful help from customer service. Choose a bank with a good name and a great call centre.
- What is the best reward programme?
You might want to think about which card gives you the best rewards or frequent flyer points.
In conclusion, you will get a lot of "pre-approved" credit card application forms and offers for credit card deals in the mail. But do spend some time looking for the right credit card for you.
