Most credit card offers come in the form of letters or e-mails, so it shouldn't be a surprise when you log into your email account and see a stream of credit card offers promising you this better feature than the other, giving you lower rates than most, giving you more rewards, and so on. If you're easily swayed by these tempting offers, you might be tempted to apply to the first one that catches your eye.
How do you decide which company's credit card offer is the best? Even though you might not think so, it would all begin with you. You have to think about whether or not you can use a credit card in a smart way so that you don't end up in financial trouble because you can't pay your bills. Most cardholders who don't pay attention to how they use their credit card end up in this situation. Most of the time, they don't have enough money to pay the bill when it comes because they bought so much.
Before you decide to get a credit card, make sure you know how to use it most wisely. If not, you can just keep the cash you have, which could be very inconvenient. If you think you can handle it, you can start looking for the best credit card company right away.
First, you should know what the credit card companies' APRs are. Don't be fooled by the ads of some companies that show a rate that seems lower than it really is, but has hidden fees. A credit card with no interest rate is even less likely, so take the time to find out how it would work. It's possible that there will be no interest rate, but that could just be the introductory offer. What happens is that it goes through the roof without you knowing, and you can see that on your bills after a few months, so be careful.
Second, find out what interest rates the credit card company offers. There are credit card companies that offer a "fixed rate," which means that you'll pay the same rate all year long. Other companies could have rates that change all the time based on how the economy is doing in the outside world.
Find out how credit card companies let their customers know when their balances change. Some keep their clients up to date on their accounts by sending them monthly letters, while others use text messages or emails. This is a very important point because you might think the company will send you a different kind of notice than what they actually do. This could make it easier for you to overlook some problems with the statements.
Also, it's important to know what the annual fees are. Again, don't be fooled by companies that give you a free annual fee. This could just be a way to get you to sign up with them. The annual fee might not be charged for the first year of membership, but it might start to show up on the bills for the following years after the first year.
Make sure you know how the company that issued your credit card handles lost cards. This should be written into the company's anti-fraud programme, and this part should be looked over to avoid problems in the end. You can ask the company questions about this part to help you understand what's going on.
