Choosing the right credit card for all your needs is really a crucial point. Several things are to be kept in the mind since it can turn out to be a big reason for your overspending habits. So, it is vital for you to have a checklist of the things, so, that you could choose the right ones out. Also, if you are having a good credit facility then you could possibly purchase your home, your dream car or start a business for yourself. All this might happen at a lower interest rate. To choose the best card for your needs you can opt the following tips:
Check the Credit Score
In order to acquire your card of credit you should first determine your credit score. If you want to have the best credit cards then you have to maintain a good credit score. This will help you define the field of selection.
Determine the Spend Habits
Most people have the question in mind that, should they cover the whole spending limit each month or shall they maintain a minimum balance? One also needs to determine the spending types, that is, whether the spending will be for larger items or for the emergencies.
Rate of the Cards
Next, you need to know the amount that you are paying for the buying the stuff. This would be including the interest rates. Most of the cards have fixed rates. Some cards might also have variable rates. When you are choosing a card, be sure to prefer the ones that have 0% of interest rates for the first year.
Fixed Cards- If you are thinking of choosing fixed rate cards then know that they have the annual percentage rates fixed. The rates can vary from 16.54% to anywhere around 22%. The credit cards company can revise the rates at any time.
Variable Cards- These kinds of cards have the rates stated as the index plus margin. This situation can be both tricky and advantageous for people, depending on the way they intend to use the card.
The Card Limit
Another important factor of having a credit card at your exposure is that limit. You might want to have a limit that is high enough so that you can avoid reaching the maximum balance. In both ways, like if you are carrying a max balance or reaching the extreme limit of the card can have a negative impact on your credit score.
Method of Charging Interests
Check from the issuer of the card about the method of computing the interests that are charged on your card. So, here you can expect to have the average daily card balance to be taken into consideration. The monthly rates are to be calculated having the daily balances added. Then they are divided by the total number of days in the billing cycle. So, using this method you will tend to get lower interest rates with having more number of days in the cycle.
If you are keeping these things in mind, then we are sure that you would be able to choose credit cards that will suit your needs well.
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