Tips For Comparing Credit Cards
Are you ready to start looking for your next credit card? Are you one of the several Americans that will apply for your first today? If so, there is one thing you should always keep in mind about these special pieces of plastic. If used properly, they can lead to financial strength and stability. However, if used improperly, they can lead to financial hardship and even bankruptcy. With that said, the first step to using credit cards properly is comparing them properly to ensure that you choose the one that will best fit your unique financial position.
Tip #1: Compare All Interest Rates: I'm sure you know that the accounts you will be comparing all will have an interest rate attached to them. This interest rate will be the main source of fees that you will be charged as a result of using your credit card. The higher the interest rates are on the account that you choose, the more fees you will pay as a result of using it. Adversely, the lower the interest rates, the lower the fees that you will have to pay! It is also vital that you remember that there are more than one interest rate on the cards that you will be looking through. As a matter of fact, most offers will come with 5 interest rates that include the standard, promotional, balance transfer, cash advance and default interest rates. As you compare credit cards, you should always make sure to compare ALL interest rates!
Tip #2: Compare All Fees: Yes, interest rates are the primary source of fees associated with credit cards. However, interest rates are not the only fees that you will be charged as a result of using yours. Most offers that you will compare will come with their own set of fees including annual fees, bounce check fees, balance transfer fees and more! Therefore, if an offer really catches your eye, the first thing you should do is read the rates and fees section of the terms and conditions for the account you are interested in. This will ensure that you are aware of and agree to any and all fees that you may be charged as a result of using the card that you have chosen!
Tip #3: Compare Grace Periods: Grace periods are the amounts of time that lenders will give you from the day you make a purchase to the first day that interest rates will be charged on that purchase. Because interest rates on credit cards are daily compound, every day makes a difference quite literally! Generally, most offers will give a 14 to 21 day grace period or simply ask that you pay off your balance in full within each billing cycle to avoid interest however, some will start charging interest on the day that a purchase is made.
Tip #4: Compare Rewards: Finally, due to the amazing amounts of competition in the credit card industry, quite a few lenders have begun to attach rewards to the offers that they provide. These rewards range from cash back to skymiles to gift cards and gas! When you compare credit cards, you should always choose the rewards program that you will use the most!
And that's it. By this point, you should have compared all of the most important factors associated with credit cards. I hope you've enjoyed this article and that it has answered all of your questions. However, it would be ignorant to think that one article could answer all questions that anyone may have. That said, if you still have questions after reading this article, please feel free to visit the source of the information found here today, JEMCreditCards.com, dictated in the resources box!
Tip #1: Compare All Interest Rates: I'm sure you know that the accounts you will be comparing all will have an interest rate attached to them. This interest rate will be the main source of fees that you will be charged as a result of using your credit card. The higher the interest rates are on the account that you choose, the more fees you will pay as a result of using it. Adversely, the lower the interest rates, the lower the fees that you will have to pay! It is also vital that you remember that there are more than one interest rate on the cards that you will be looking through. As a matter of fact, most offers will come with 5 interest rates that include the standard, promotional, balance transfer, cash advance and default interest rates. As you compare credit cards, you should always make sure to compare ALL interest rates!
Tip #2: Compare All Fees: Yes, interest rates are the primary source of fees associated with credit cards. However, interest rates are not the only fees that you will be charged as a result of using yours. Most offers that you will compare will come with their own set of fees including annual fees, bounce check fees, balance transfer fees and more! Therefore, if an offer really catches your eye, the first thing you should do is read the rates and fees section of the terms and conditions for the account you are interested in. This will ensure that you are aware of and agree to any and all fees that you may be charged as a result of using the card that you have chosen!
Tip #3: Compare Grace Periods: Grace periods are the amounts of time that lenders will give you from the day you make a purchase to the first day that interest rates will be charged on that purchase. Because interest rates on credit cards are daily compound, every day makes a difference quite literally! Generally, most offers will give a 14 to 21 day grace period or simply ask that you pay off your balance in full within each billing cycle to avoid interest however, some will start charging interest on the day that a purchase is made.
Tip #4: Compare Rewards: Finally, due to the amazing amounts of competition in the credit card industry, quite a few lenders have begun to attach rewards to the offers that they provide. These rewards range from cash back to skymiles to gift cards and gas! When you compare credit cards, you should always choose the rewards program that you will use the most!
And that's it. By this point, you should have compared all of the most important factors associated with credit cards. I hope you've enjoyed this article and that it has answered all of your questions. However, it would be ignorant to think that one article could answer all questions that anyone may have. That said, if you still have questions after reading this article, please feel free to visit the source of the information found here today, JEMCreditCards.com, dictated in the resources box!
Source...