There are many offers for credit cards. Maybe all the ads you've seen have made you think about getting one, or maybe you've been thinking about it for the first time. Having a credit card can make life easier, but there are so many to choose from that it can be hard to decide which one to get. Here are a few easy things you need to know so you don't get one that turns out to be a nightmare.
Your first step is to decide what kind of credit card you want. By looking at what you spend the most on each month, you should be able to figure out if you need an air miles card, a gas card, a rewards card for more general purchases, or something else. By choosing a card that works for most of your purchases, you can get the most rewards or rebates, which can help you save money on your purchases.
Note the credit card offer's interest rate. Even though it might not apply at first because of the introductory offer, you need to know what it is because it will apply when the introductory offer is over. Obviously, if you make your payments on time and in full every month, the interest rate won't matter.
Then, take a minute to look at the first offer. Check to see how long it is and what it is for. Often, the length of time for the balance transfer feature is different than that for your regular purchases. In other words, you may only have 6 months to enjoy the 0% APR interest on the amount you transferred, but you may have a full year or more to enjoy that rate on your other purchases.
If you already owe money on other credit cards, you should check to see if any fees will be charged. Some credit cards will charge you up to 4% of the amount you're transferring, but most won't charge you anything at all. Also, find out how long the 0% APR on this amount will last. Some cards let you keep that rate for as long as it takes to pay off the transfer. This is a great way to save money.
Then, check to see what kinds of rewards the card gives you. Some cards are stingy with their rewards, while others give out a lot more. The truth is that the type of credit card you can get will depend on how good your credit is. Most cards will give you cash back, discounts, or rebates of one to three percent when you buy groceries, gas, and medicine. Other purchases can save you even more.
Be sure to also find out if there are any fees. These will be different on each card. Some cards have a fee every year, and others may have fees for processing, applying, and more. All of them should be familiar to you. Compare the different credit cards, and you should be able to choose the one that fits your needs the best. This will help you avoid getting the wrong credit card.
But it's very important to keep track of those credit cards. Most credit cards have a special feature called an introductory offer that is not seen as a necessity. In other words, if you don't make your payments on time, even if you only miss one, you could lose the low interest rate and have to pay the full interest rate right away. You can keep your best cards that way by making payments on time and paying them off in full every month. This will get you the best rewards.
