Points To Consider While Selecting A Credit Card

March 02, 2014  //  Posted by: Financial advisor  //  Category: Financial Manangement

Credit CardAlmost every bank and financial institution offers credit cards to its clients these days; these cards allow you to make purchases of consumer goods as well as services on credit. In fact, making purchases with credit cards is the most common form of payment nowadays and this has already led to a direct increase in the level of consumerism. With the increased use of credit cards, different types of credit cards have made their foray into the market and therefore if you are planning to get a new credit card it is important that you understand which the best for you is.

Selecting a credit card

• First, it is important for you to know about the different kinds of credit cards available. While the most common type of credit card is the one offered by banks, there are retail store credit cards and entertainment and travel cards as well. You will have to understand which kind of credit card will suit your need the best and decide accordingly.

• You will have to also determine how you plan to use the credit card. If at times you run short of money and are unable to pay the entire credit card bills and would want to pay only the minimum amount then you can opt for a credit card with low interest rate.

• While choosing a credit card it is also very important to verify the Annual Percentage Rate (APR), balance transfer, cash advances and periodic rate of purchase. Compare the APR with monthly rate schemes and see whether it is worth choosing or not.

• See whether a credit card offers grace period or interest free period or not and also check out whether the card can be grouped with cash advance plans or not.

• Check whether the payment scheme or plan suits you or not.