May 11 2016
Choosing a Credit Card with good Rate
Need for good credit card rates:
Credit cards help you borrow money at a very low cost for spending. These credit cards are user friendly if you are wise about your spending habits. But some credit cards have high interest rates, high APR as well as hidden costs. In this section we will teach you some technicalities you need to look into before purchasing your first credit card. Getting good credit card rates is the best way to save on money you will spend through interest rates.
Steps to choose good credit card rates:
Make a list of how exactly you intend to use the credit card. If you plan to pay the complete balance every month, you will not have to worry about the interest rates. If you plan to pay partial amounts, choose a bank with good credit card rates. If you plan to purchase all your goods with your credit card make sure to get a card with higher expenditure limits along with reward points. For emergency purposes choose a bank with good credit card rates.
- Interest rate
The annual percentage rate (APR) is the interest rate that comes along every credit card. You can choose between fixed rates or else through a fluctuating rate. A fixed rate will help you determine the APR for every month whereas a variable interest rate fluctuates. Make sure to choose banks with good credit card rates. This will help you save a bulkload of money.
- Credit Limit
Based on your needs, choose a credit card that has your desired credit limit. A credit card that has a high credit limit can cause you problems if you splurge whereas a credit card with lower credit limit will become futile. Make a list of your spending and based on that choose a bank with good credit card rates along with a matching credit limit.
- Lower fees and penalties
Credit card companies have 100 different ways of which they can make money of you. You need to be vigilant and choose companies that have lower transaction fees for balance transfers and cash advances. Also make sure that you are not penalized with higher fees for delayed payments as well as for default payments.
Make sure that you choose banks that have better incentives for you than the other competitors. Reward points, cash backs etc. are some of the ways they can lure people for taking their credit cards. Choose a bank that provides a good credit card rate along with flexibility in transactions. Some of the other incentives include providing tools to compute your balance along with managing your accounts.
It is thus mandatory to choose banks that provide all the above mentioned items along with good credit card rates. Make proper use of these credit cards to help you increase your credit history so that you can apply for loans easily. Another important thing is to never abuse these cards.