Why did I say that? Credit cards are the fastest, easiest, and safest way to make purchases than cash.
Yes, it is true that credit card fraud is rampant nowadays, but as long as you take the precautionary actions; you are safe in using your credit card.
What’s important is that you are able to maximize the use of your credit card and that you do not end up bankrupt by using it.
How do you do that? You can do it by comparing the different credit cards offered on the market and selecting the best that suits your needs.
Which Credit Card is the Best for You?
When you compare credit cards, you would know the different features of each card that will guide you in choosing the best card for you.
However, there are some people who are confused when they read the financial language and even have nose bleeds from simply looking at the numbers they see.
But, do not be afraid of words such as annual percentage rate (APR), grace period, annual fees, penalty fees, cash advance charges, credit limit, rewards, and many more.
Knowing all these will help you learn how to choose the best credit card for you and how to use it efficiently and effectively.
Important Factors to Use When You Compare Credit Cards
You will often read in most websites about credit cards that credit cards are not created equal. Well, it is true that’s why you need to compare credit cards.
Apparently, there are even a few credit card companies that are notorious in their practices with the hope that consumers will not read the fine print and end up signing a contract that will benefit them more than the consumers.
So, to compare credit cards systematically and efficiently, here are some important factors you must use in comparing the different credit cards.
- One of the most critical factors in comparing credit cards is the APR or Annual Percentage Rate. This rate is the interest that you pay yearly.Make sure that you understand what APR your credit card company is charging and if the rate is the lowest on the market.
- Another important factor is the Annual Fee that the card company charges. Often, this fee is waived for the first year and succeeding years depending if you had a good payment performance.Therefore, you must make sure that you know the complete details in relation with the annual fee and whether it will benefit you or not.
- Grace Period is crucial as it will establish when you should start paying interest on your purchases. A credit card with longer grace period is always beneficial for you.
- It is also important that you check details about Minimum Payments and Penalties. Determine how the minimum payments are computed and the rates for the penalties.The card with the lowest minimum payment and lowest penalty rate is the best card for you.
- Most credit companies offer Rewards and Points in order to entice consumers to buy their credit cards.Even if these incentives are good for you, you must still check the details such as interest rates, fees, redemption, etc. to determine if you are getting the best deal.
There are numerous credit cards out there to choose from, and using the above factors to compare credit cards will help you get the one that is best for you.
If you still have other questions about credit cards, you may use our SEARCH box or send a message and I will be glad to help you.