Certain risks can come with the application of a credit card, but again, it doesn’t have to be that complicated. Considering there are a million and one credit cards available, you should take your time to get the one that suits your needs. Here are some of the things to put into consideration when choosing a credit card app.
As for the charges, you should check in the credit agreement. What other fees apply to this card? In case you are using the card for late payment or abroad, there is always a cost for going over your credit limit.
2. Minimum Payment
If you do not pay off the balance every month, you are requested to pay the least amount, which is usually around 3% of the outstanding balance.
3. Cash Reimbursement
Depending on how much you spend, a certain amount is refunded to your card. Remember, according to Kin Hubbard, the safest way to double your cash is to fold it and put it back to your pocket, so qualifying to get some cashback should be your biggest concern. Lower interest can be a perfect deal, but this can only be achieved if you pay your balance in full every month.
4. Loyalty Points
Loyalty is about understanding clients, their buying behavior, and preferences. Check out the particular shops or merchants that ensure the customer is placed at the center of their business. And by so doing, you will be able to buy goods using the points that you have earned. The points increase depending on the amount you use.
5. Yearly Fee
By the end of each year, some cards have a charging fee for card usage. This fee is added to the outstanding amount, and unless you pay it in full, you will be forced to pay some interest on the payment and the expenditure.
6. Annual Percentage Rate (APR)
If you don’t clear off the balance every month, there is a specific rate of borrowing on the credit card, referred to as the annual percentage rate. You can select the cheapest by comparing the APR for different cards. Additionally, you should also know more about the card in terms of fees, rates, and inducements.
7. Introductory Interest Rates
The introductory interest rate is where you kick off paying low-interest rate, which rises after a certain period. When comparing cards, don’t only look at the period the introductory rate lasts but, also the borrowing rate it changes to at the end of the initial period.
With the checklist above from yearly fee to annual percentage rate (APR) to introductory interest rates to charges and the minimum payment, you can never go wrong with your choice of credit card app. Not forgetting the loyalty points and cash reimbursement, card selection has never been this easy. Different cards suit different types of cardholders but having the checklist above; card selection will no longer be a problem. It will be as easy as ABC!