When you select your card, you should look at the introductory rates, balance transfer rates, and other offers that may apply to new cards and new holders. Some will offer you truly amazing deals, especially if you have good credit. But remember the emphasis is on making sure it is the right deal for you.
The first thing you'll need to decide when choosing your card, is the reason why you want one in the first place.
Some people choose to get a card for cash flow purposes. Using your card for your day to day living expenses allows you to leave your salary in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then at the end of the month, simply pay your bill. Does this sound like you, or how you would want to use your new credit card?
Or you may want it for instant cash purposes. This way, you can use the credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is what you primarily want the card for, you should look for one that has the lowest rate possible for instant cash transactions.
Are you likely to pay the balance in full each month, or only the minimum amount, or somewhere between? If you intend to pay the full amount then the interest rate on offer for outstanding balances should not be the key incentive to choose an offer. If you are likely to leave an outstanding balance each month then the interest rate is a key factor in your choice.
If so the key area you'll need to look at is the APR (Annual Percentage Rate). The APR is what you will pay on what you purchase when the free period runs out. This is usually on outstanding balances and items designated as cash withdrawals (but can vary so check the terms on offer). APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. If you plan on not paying the balance off monthly then the lower the APR rate you get, the better off you'll be. If you do plan on paying off the balance each month then the APR is not your key incentive.
Another important area to look at when choosing your credit card is the incentives. There are numerous types of incentives on offer, such as reward points,cash back with purchases, add on deals on travel insurance or breakdown cover, 0% interest offers, balance transfer deals, the list seems endless. But don't just go for the most eye-catching. Pick the deal with the incentives that best suit your needs.
Another concern with choosing your credit card is the minimum payment amount. Most start around 3% of the outstanding balance, although again this can vary. In addition check the interest free period. How many days grace do you effectively get before each purchase starts to attract interest?
When you make that final decision and choose your credit card, you should always make sure that you know exactly what you are getting. If you put some time and research into choosing your credit card, you'll find the best one for you.
The first thing you'll need to decide when choosing your card, is the reason why you want one in the first place.
Some people choose to get a card for cash flow purposes. Using your card for your day to day living expenses allows you to leave your salary in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then at the end of the month, simply pay your bill. Does this sound like you, or how you would want to use your new credit card?
Or you may want it for instant cash purposes. This way, you can use the credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is what you primarily want the card for, you should look for one that has the lowest rate possible for instant cash transactions.
Are you likely to pay the balance in full each month, or only the minimum amount, or somewhere between? If you intend to pay the full amount then the interest rate on offer for outstanding balances should not be the key incentive to choose an offer. If you are likely to leave an outstanding balance each month then the interest rate is a key factor in your choice.
If so the key area you'll need to look at is the APR (Annual Percentage Rate). The APR is what you will pay on what you purchase when the free period runs out. This is usually on outstanding balances and items designated as cash withdrawals (but can vary so check the terms on offer). APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. If you plan on not paying the balance off monthly then the lower the APR rate you get, the better off you'll be. If you do plan on paying off the balance each month then the APR is not your key incentive.
Another important area to look at when choosing your credit card is the incentives. There are numerous types of incentives on offer, such as reward points,cash back with purchases, add on deals on travel insurance or breakdown cover, 0% interest offers, balance transfer deals, the list seems endless. But don't just go for the most eye-catching. Pick the deal with the incentives that best suit your needs.
Another concern with choosing your credit card is the minimum payment amount. Most start around 3% of the outstanding balance, although again this can vary. In addition check the interest free period. How many days grace do you effectively get before each purchase starts to attract interest?
When you make that final decision and choose your credit card, you should always make sure that you know exactly what you are getting. If you put some time and research into choosing your credit card, you'll find the best one for you.
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