BEST WAY TO CHOOSE A CREDIT CARD
Millions of Americans dread the monthly payment of credit card bills. Winning battles against credit cards can be the major difference between long term debt and newfound savings! With an interest rate that is low, credit card debt can not only be manageable, but profitable! It’s all about choosing the right card and using it judiciously.
First of all, do your research. The internet is a storehouse of information. Look around patiently. Compare offers, terms and fees before you make your final decision. Consider their regular interest rate, the rate on transferred balance, the rate on cash advances, annual fees and so on. Seek information of various credit card companies and analyze them. There are sites that offer tips on managing your credit as well.
Call the Customer Service Number for the cards. Enquire details and build conversation. They might offer lower rates if they know that you have been offered a lower rate of interest by another bank. The credit card business is highly competitive and these companies need you as much as you need them!
Beware of interest rate scams and hidden clauses. Sometimes, the clauses and conditions are worded very trickily. Ensure you understand every bit of it and you are not in the dark as long as all any hidden clauses are concerned. These clauses that are hidden in some plans might actually end you up in higher payments than ever before! Some use the ‘two-cycle’ billing system where they device new rates of interests based on what you owed them the previous month even you have paid of that bill. So if you see ‘two term cycle billing’ in the agreement, keep away from it completely.
You tend to get a thousand calls from credit card companies offering teaser low rates of interest for transfers for certain introductory periods. Ensure that rate of interest lasts for as long as you need to pay back the amount. Else, you will end up transferring balances continuously from one card to another and end up only losing in the bargain.
Read the Fine Print on special offers. Many credit card companies offer special introductory deals, vacation packages, frequent flyer programs and other incentives to attract new customers. These offers sound extremely enticing but these are the same companies that charge a horrendous an annual fee and a 28 percent APR just for you to avail those so called “free” services. So watch out! You have to understand “their” language!
Join a Credit Union. Credit Unions exist to serve their member owners with favorable rates of interests, competitive prices, investments and credit cards. The non-profit status of credit unions helps them operate at lower costs than for-profit institutions.
Nowadays, credit cards and credit card companies are all over. It’s about getting the “best” card, with best rates that fits your pocket well. So arm yourself with all the facts and choose that “right” card! That smile on your face will always remain!
