Four Questions to Ask During Your Credit Card Hunt
In today’s expensive world, credit cards have become a necessity for most. Fortunately (or unfortunately), they’re available from nearly every major lender, and they can provide tremendous flexibility for you.
There are good and bad points associated with getting credit cards. On the good side, credit cards can be used for purchases around the world, in any place where you see the logo (and the biggies, such as Visa and MasterCard have their logos plastered everywhere).
Credit cards also make it easy and quick to make purchases, whether in person, online or over the telephone, plus, credit cards provide the consumer with purchased item and travel insurance.
On the negative side of credit cards, they can be quite expensive and difficult to control if you don’t have good will-power. If this is the case, it is possible for serious debt problems to arise and the only way out is to seek professional debt help. Other types of borrowing, such as personal loans, often have less expensive interest rates. And there is normally an expectation that you will keep detailed records, in case the credit card company make a mistake and attempt to charge you for it. Other types of borrowing, such as personal loans, often have less expensive interest rates. And there is normally an expectation that you will keep detailed records, in case the credit card company make a mistake and attempt to charge you for it.
Nonetheless, let’s assume you’ve decided you must have a credit card (or two) getting those first cards can be difficult and confusing. As you begin your hunt for the right credit cards, keep in mind the following questions:
1. Which card should you get? The two biggest names in the industry are MasterCard and Visa, and they are available from almost every lender including Barclaycard and Egg Credit Card brands. Gold and Platinum cards are normally available for those who have higher income levels; with these cards come certain added benefits.
Affinity and charity cards operate much like standard credit cards do, but a small amount of each purchase amount is then donated to the charitable group connected with the card.
Loyalty cards normally offer certain incentives to the consumer such as air miles, cash bonuses, points, etc.
2) Can I afford the rates and fees? Every credit card has certain interest charges and annual fees. The interest rates are normally somewhat high, and of course they differ among credit companies. Some companies even allow an interest-free period and some will charge penalties for returned or late payments or if you go over your credit limit.
A credit card company will typically demand that you repay the minimum repayment each month; you will find this amount on your statement each month. If you don’t pay this, they will then ask that you repay a percentage of your outstanding balance.
3) What’s involved in applying? The card company will supply the application which you complete and submit back to them. Usually within just a couple of days, they will make a decision of whether you’re eligible for credit or not. If you’re refused credit, you may apply to the credit agency for your records so you can determine why your application was declined.
4) What kind of protection is offered? Many companies will offer a hundred days worth of protection against any goods that you bought with the card. This protection can be for loss, damage or theft, but just to be sure, ask what protection the company offers.
Also in way of protection, be sure to commit your PIN (Personal Identification Number) to memory; it’s dangerous storing a written record of the number around with you.
Here are some sites we would like to recommend to you:
Savings accounts from Citibank.
