Tuesday, February 25, 2003

What to Know When Getting a Credit Card

Using a credit card can be very convenient and can help you build your credit profile. When choosing a credit card, look at several variables. Choosing the best credit card for your situation is important so that you can save money and get the most rewards for the purchases you make.

Interest Rate

    One of the most important things for you to consider when selecting a credit card is the interest rate. Every credit card will have a specific interest rate that they charge on purchases you make. If you do not pay your credit card balance off in full every month, you will have to pay interest on the amount that is left on the card. Choosing a card with a low interest rate will help you save a significant amount of money.

Rewards

    If you plan on using your card frequently, you may want to pay special attention to the rewards program that your card offers. Credit card rewards are one of the perks of being a credit card holder, and you want to be able to take full advantage of them. Many credit cards provide you with points every time you make a purchase. You can use these points to get free travel, merchandise or cash back. Find the program that fits your needs the best.

Extra Fees

    The interest rate is not the only way that credit card companies make money. When choosing a card, you also have to look at the other fees that are involved. For example, many credit cards charge an annual fee for having a card. They could also charge a separate fee if you get a cash advance. Every card will have late fees if you do not make your payment. Read about the fee structure of each card that you are considering before making a choice.

Other Perks

    Besides rewards, some credit cards also offer additional perks. For example, some cards give you a discount when you shop at particular stores. Some credit cards give you access to private lounges at airports while you are waiting. Some cards even offer free access to your credit report at any time. Read all of the details of card and find out what additional perks you can get by signing up.

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