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Are
you looking for that perfect
credit card?
If so, you may be confused about what exactly to
look for in order to begin your credit card
company comparison.
There are many great and credit cards
out there, but unfortunately, many companies
target the young and financially inexperienced,
who aren’t knowledgeable enough to make a wise and
informed decision about which credit card will be
the best one for them. Consequently, these
individuals who haven’t done their research tend
to pick a random credit card—or the first company
who makes them an offer—which may not be the best
option for them.
The first thing you should do is determine what
your financial needs and goals are in using a
credit card, and make a physical list. This way,
when you’re looking for that perfect credit card,
you’ll know exactly what the credit card must have
and you can stay focused on this instead of being
sidetracked by attractive deals and special
features that you don’t really need.
For example, if you plan to use your credit card
for larger purchases that you can’t afford upfront
and want to pay off on a long-term basis, the
APR,
or annual percentage rate—which basically refers
to the accumulated interest—will definitely need
to be high on your list of considerations. The
lower APR you can get, the better—although credit
cardholders with no or bad credit will have a
harder time being accepted for credit cards with
low APRs
than those with good credit.
On the other hand, if you decided to use your
credit card for emergencies only and plan to pay
the balance back in full each month, the annual fee
and other possible incurred charges will matter to
you more than the APR.
When you know exactly what you want in a credit
card, do your research online and through local
banks to determine which credit card will fit the
bill most for you and your financial situation.
Study the offers that are sent to your mailbox and
compare them, specifically looking for the
features that you will need the most. Call the
different credit card companies themselves and
tell them precisely what you’re looking for, and
what kind of deal they can offer you. Tell them
you’re “in the market for the right credit card”
and you’re calling many different companies.
However, if you know you want a credit card but
you’re not entirely sure what you will all use it
for, here are some general factors to take into
consideration when comparing credit card
companies’ deals and offers.
First, determine where the card is accepted. The
broader the range, the better—such as nationally
or internationally. Some credit cards are only
available regionally or are specific to one store.
Also, find out what the interest rate
is and whether it is fixed or variable. The APR is
also something to take into account, and it may
vary for purchases, cash advances
and balance transfers.
You will also want to find out about and compare
the annual fee (if there is one), penalties and
grace periods,
and extra features like rewards programs,
rebates, protections, other warranties, insurance
and discounts, to name a few. You’ll also need to
discover whether these extra features are covered
or if they will cost extra.
Basically, finding the right credit card comes
down to knowing what you’re looking for, what you
think you might be using the credit card for, and
what kind of extra features you might be
interested in.
Once you’ve found the credit card with the right
features and terms you are comfortable with, call
the credit card company to see if the
advertisement (whether you’ve found it online or
elsewhere, such as a letter or flyer) can verify
the information. You might also inquire of any
other plans or offers.
The process of searching for and choosing the
right credit card for you can be long, daunting
and complicated. Nevertheless, if you take the
time to do your homework, you will be on the way
to getting a good deal and a credit card you can
live with and enjoy.
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