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How
many "pre-approved"
credit card
offers do you get in the mail in the average month
that seem to shout at you to accept the offer
before it expires? If you're in the market for
a credit card, take some time to shop all the
offers to get the best credit card available to
you.
First, look into the credit card terms and
conditions. These are the fees associated with
making purchases on the card, transferring
balances to the card, taking cash withdrawals, and
late fees. You can easily compare the annual
percentage rate between credit card offers. The
annual percentage rate is a way to measure what
the credit actually costs you. Beware of variable
annual percentage rates- and if you are
considering credit card offers with variable
APR's,
find out how often the rate can be changed, how it
effects the finance charges
you are billed each month, and what the rate is
based on.
Secondly, find out whether or not the cards in
question charge an annual membership fee. Annual
fees can be anything from $25 to $100 a year, with
some platinum credit cards
charging several hundred dollars. This is a fee
that you are required to pay each year just for
having the card in your wallet- even if you never
make a purchase or transfer a balance to the
account. If you're going to pay an annual fee
on a credit card, there should be rewards or low
rates that make the fee worth paying.
Look into the grace period
of the credit card. Many cards will give you
about 56 days to make payments interest free,
without finance charges, just by paying your
entire balance on time. Cards that do not have
this free period can charge you a finance charge
from the date you make a purchase on your card, or
from the date each charge is posted to the
account. Also consider transaction fees, and
another fees associated with having the credit
card. Just about every credit card will issue a
fee if you take a cash advance
or make your payment past the due date. Find out
whether or not there is a monthly fee charged to
the account when you don't make any purchases-
there are some credit cards that will charge you
monthly even if you haven't taken the card out of
your wallet, and those are fees you can easily
avoid just by selecting a credit card that doesn't
have these additional fees.
You'll also want to consider the reward programs
offered from each credit card
you are considering applying for. If you are a
frequent traveler, it makes sense to look at
rewards programs
that earn you discounted flights, hotels, and car
rentals when you purchase your travel expenses and
tickets using the credit card. Over time, your
purchases will result in free travel, making the
credit card with the travel rewards program
a great choice for the frequent traveler. A very
popular form of credit card rewards program is the
cash back
offer. These credit cards will reward spenders
with 1% to 5% cash back for all of their
purchases- either credited back to the credit card
or sent as a check to the card holder. This may
be a good card for you if you pay your balances
off each month in full- because typically a cash
back card will have a higher percentage rate than
cards without cash back programs.
The bottom line in selecting a credit card is not
to jump on the first offer that comes through the
mail. You really need to spend a little time
doing your homework and learning about the
different credit cards available to you in order
to get the best rates and best deals for your
credit purchases.
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