Credit cards let you keep your life on track in times when your bank account is not allowing you to do so. However, many of us often get mistaken by its usage with a debit card. But, this could be the biggest mistake one can make.
A credit card is the most powerful financial tool that the modern technology has ever produced. Having such privilege obviously, makes our life simpler but only if these cards are used in a proper way.
The first and foremost thing a person looks for while Credit cards apply online is the reward point. After that, cashback returns also hold extra marks and every other day we hear some or the other bank coming up with a new credit card with attractive offers.
As a result, it gets a little difficult to choose the best deal for oneself. But, no matter how alluring a card looks, you must know that the card as per your requirement can prove to be the best shopping companion and the one chosen without doing proper research can prove to be troublesome. So, below are some smart ways to choose this thin ‘plastic’ card and save yourself from paying high-interest rates.
Identify Your Need: The foremost basic thing you must do before choosing a Credit cards for yourself is to be true to yourself and your needs. You must make sure for what purposes are you planning to get a card and use it wisely.
Research through online and offline resources: Even though conducting the research might sound vague and general, do it because it gives you the option to compare all the available options for you and then make the final judgment.
Review the offers and start eliminating the unwanted: Once you are through with the research, you get the authority to checkout the offers and ignore the irrelevant cards. Having said that, you can compare the features of the selected cards.
Choose the one that can strengthen contacts with credit unions: The moment you own this card, you are a creditor. The reason behind this is that it can strengthen your contacts with a credit union is that they are non-profitable organizations and have lower interest rates.
Look for a low Annual Percentage Rate (APR): Another important thing that you must do is to look for the card that has the minimum cost of credit and check the APR as this is the amount charged on monthly outstanding balances. So, make sure you choose low-interest rate card and pay lower.
Decide between fixed-rate or adjustable rate: Some people often choose a fixed-rate when they are sure about making full payment on a monthly basis. So, the choice is yours.
Do extensive research on the fees: You must do extensive research on card fees, transaction fees and other related charges to be on the safer side.
Check the duration of Grace Period: It is also important to be clear about the duration between the date of purchase and the date interest starts being charged on that purchase so that you can manage your expenses accordingly.
Look for additional benefits: As a customer, you are free to make choices (in advance) and one of the most beneficial things is to have a close look at the additional benefits. Also, make sure that you understand the important and additional technologies in the contract in your application and acquisition.
Take into account the credit limit: Last but not the least it to check the annual credit limit that you can get to have a pleasant journey.
Pay more than the minimum balance: One of the most common and biggest mistakes is to make the balanced payments. In simple terms, it is advisable to make extra payments as much as you can afford. By paying more than your minimum balance will not only save you from growing bills but is also a kind of savings of 10% to 29% per year in interest.
Use it for daily expenditure: You must understand the difference between credit card and debit card. On one hand, the first one is a debt for which you have to pay some interest and the other on is a normal usage from your bank account balance. So, be smart enough to use a credit card for higher expenses only.
Get attracted by Reward Points: The reality behind the rewards is that they are far less worthy than the extra interest you will accrue if you fail to pay off the money spend on such bonuses.
Keep the debts: The most valuable of all suggestions is to do total payments even if it hurts. Yes, the biggest mistake people make is that they get scared of paying the total amount and get involved in paying the interest for their life! So, don’t be scared and keep the debts clear to enjoy the services without harming your pocket much.