Need A New Credit Card? Do Some Research First

By: Niall Roche


It is no wonder that credit cards have become the most common way to pay for products and services over the past few decades. All of the technological advances we have had make it easier to pay with credit than with cash. we use credit cards to shop online, to pay for fast food and to book vacations. However, choosing the right credit card is still not a simple task. There are so many credit cards and each card will have different features. To make sure you get the best card for you and your budget, be sure to review a few key features of the credit cards you are considering.

The first thing you should consider when you are selecting a credit card is the interest rate each card you are evaluating offers. It is important to get the lowest possible interest rate, since you pay that rate on every dollar charged on your card. Since many credit cards charge interest rates of 18% or more, this interest can really add up. For example, a credit card with a balance of one hundred dollars would have an additional eighteen dollars in interest at an 18% interest rate, but only six dollars with a 6% interest rate. Many credit cards will offer a very low introductory interest rate. However this rate will increase if you pay your bill late or charge more than your credit limit on the card.

A second thing you should consider before you accept a new credit card is annual fees. You should look for a card that advertises no annual fees, if at all possible. When cards charge an annual fee, the fee is added to your balance once a year and is treated just like the rest of the money charged on your card. Of course, it is hard to find a credit card with no annual fee if your credit isn't good. If your credit is fairly good, but has some problems, you may have to pay a small annual fee. People with bad credit usually have to pay a high annual fee to obtain a credit card.

It is important to take a look at a variety of creditors to find the best deal on credit cards. Places that offer credit cards to individuals besides your friendly local bank include major credit retailers, retail stores and alternate lenders. Each of these places can really differ on interest rates, finance charges and other fees, so be sure to take a close look at the details of at least several types of lenders. With interest rates differing by as much as 10% for the same person, it really pays to shop around. Of course, before you sign that application, be sure that you don't get a card that has a low introductory rate for a few months that will skyrocket as soon as that introductory period is over. When you follow these tips on finding the best credit cards, you will make sure you select the best deal for you and your budget.


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