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Credit cards have become a very popular way to meet immediate financial expenses. There are many companies that offer a number of benefits with their credit cards. And even exciting credit cards are available for bad credit. <br><br>More info: https://us.afinoz.com/blogs/how-to-pick-the-best-credit-card
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• Credit cards have become a very popular way to meet immediate financial expenses. There are many companies that offer a number of benefits with their credit cards. And even exciting credit cards are available for bad credit. • As per a data released by the American Banking Association in April 2018, there were 364 million credit card accounts in the USA by the end of 2017. 185 million accounts belong to the super-prime consumers whereas 104 million accounts belong to prime consumers and 75 million credit cards are used by sub-prime users.
Key points to consider before applying for a credit card To know which credit card is best for you, you must keep the following into consideration before opting for one: • What are you expecting from your credit card- Well, credit card companies offer you cards for different purposes, for example, you have a credit card for travel, cards for entertainment, cards for dining, credit cards that have no charges on foreign transactions and much more. So, before you apply for your best credit cards, it is important that you must first check your requirement and based on it, prepare a list of credit cards that will be in your best interest.
• Do you really need a credit card- Many a time it happens that we get going with the flow and since everyone around us is buying credit cards, we also do the same. But this decision may often leave you with the burden of repayment. The credit card comes with repayment and interest rate, so you must first check whether or not you would be able to repay the same or else holding a credit card becomes a liability. This sometimes increases so much that the credit card holder has to take a loan to clear it off. • Credit Score- Before filling out the credit card application; make sure you check your credit score. Companies issuing credit cards often consider credit score before they decide to offer you credit card. Once you know your credit score, you can apply for the credit cards which are likely to get approved.
Benefits offered by the cards- Credit card offers are lucrative, some come with competitive interest rates, and some have no annual charges, while there are some which have an impressive reward points system. Make sure that while shortlisting the cards, you consider all these points and then come to a conclusion. The interest rate- APR or Annual Percentage Rate is the interest rate that a credit card has. It can be fixed or variable which is tied to another financial indicator, mostly prime rate. The fixed interest rate credit card is the same from month to month while with a variable interest rate, it fluctuates. Think for the one which will be helpful for you and apply for the same. Credit limit- If you are a person who actively uses a credit card, then the credit limit plays a key role in the same. Some cards offer a limited range while there are cards that have a higher credit limit. Remember, overspending will put you under the burden of repayment and if it is not done on time, then you may be charged penalty and it will also affect your credit score
Cashback- This is another lucrative deal that credit cards offer. You get the money refunded based on how much you spend. But, first, you need to check whether or not you qualify for the credit card offer or cash back. An important point to note here is that the card will have cash back only when you pay the balance in full each month. Fees and penalties- One of the most important factors that you must consider before choosing a credit card is to see the fees and penalties. Some of the common charges that you must look at include fees for transactions, cash advances, balance transfers, overseas transaction cost, fees for duplicate statement, card replacement fees, cash withdrawal on credit card, card replacement fee, etc. Most of the credit card companies lure you with their offerings and in a hurry to get the card, we tend to ignore these charges. So, don’t make haste while choosing the card, ask the company about the same.
Advanced Features- • See if the credit card company you are choosing is ready to provide you with the advanced feature for card protection like electronic chip protection, bio-metric cards, no duplicate holograms, anti-phishing and online fraud system. • Balance Transfer- • While choosing credit, apart from the above-mentioned factors, you need to also consider the balance transfer feature offered by the card. Some of the key factors that you must consider include: • • The current rate of payment • • Ask the credit card company provider if they have an introductory APR offer • • What would be the rate you need to pay after introductory APR offer expires. • • Is there any fee that you need to pay when you transfer all or a part of your balance to the new card. This is also known as balance transfer fee.
