| |
What You Should Know About Your Credit Card
By Adam Goldman
Knowing how a credit card works is important as this is the only way you can make the card work for you rather than the other way around. While making a choice on the right credit card to pick, you should consider the following attributes before deciding.
Annual Percentage Rate
Not every credit card is equal as proven by the wide range of annual percentage rates (APR) available in the credit card market. As the APR is the interest rate charged to you on top of your credit card charges, greater delays in your payment will result in higher interest rate charges. Thus, it is important to always clear all your outstanding balances as soon as possible. Allowing the balance to snowball will not be wise as your outstanding balance may one day grow to a value that may be difficult for you to eradicate.
Grace period
The grace period is a period of time within a billing cycle where no interest rates are applicable to your credit card charges. Cards with no grace periods charge you daily interests commencing from the day you make a purchase with your credit card. The interest rate accumulates as the days go by until you pay off your outstanding balance. Other cards may provide you with a grace period (usually within a month) to pay off your charges before interest rates are applied.
Fees
Apart from the APR, there are also multiple miscellaneous fees that will be charged to your account when you use your credit card. Usually, a card with a low APR may incorporate higher annual fee charges and vice versa. The trick is to know which package allows you get the best value out of your card. For instance, if you are punctual with your payments then getting a high APR card with low annual fees would be a good idea. This way, you will not be affected by the APR when you clear all your outstanding balances within the grace period and you will not lose out on high annual fees for using the card.
Rewards
Due to the high competition between credit card providers, most credit cards come with reward programs to ensure customer loyalty. Some credit cards allow users to gain a percentage of their cash back based on the special purchases they have made with the cards. Other programs award flight miles, providing credit card users a chance to claim a free air ticket to pre-selected destinations
About the Author
Adam Goldman recommends Find Credit Cards to find a MasterCard card application. See http://www.findcreditcards.org/issuer/mastercard.php for more information.
Article Source: http://www.simplysearch4it.com/article/26132.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/26132.html" as shown above and make it hyperlinked. |
| Some other articles by Adam Goldman | The Different Types of Card Rewards Programs
Due to the highly competitive nature of the credit card business, there is a multitude of reward programs that accompany them, such as reward credit cards. These ...
Which Is the Best Airline Reward Card?
If you are a frequent traveller and an avid credit card user, getting an airline reward card can bring forth many special benefits. As each airline ...
What to Look for in a Gas Reward Card
In view of the high gas prices, we will still be much dependant on gas, until someone comes up with a better and cheaper power source replacement. Nevertheless, there is always a ...
Why Not Knowing Your Credit Score Can Hurt You
Many people are just barely aware of the significance of their credit score. For most people, knowing their credit score is just a ...
How to Obtain a Low Interest Card Offer
Everybody wants a low interest credit card but not many can actually qualify for it. It's a fact that you need is to have an excellent credit rating in order to qualify ...
How to compare Platinum Card Offers
The idea of acquiring a Platinum Card may be alluring, but before you make that all important decision on the card of your choice, it may be wise to ...
|
|
| |
|
|
|
