Credit cards are almost a necessity of life. Being without a credit card can be like being without a life jacket while stuck out in the middle of an ocean. The average consumer has approximately three cards. There are many companies that offer these cards. When deciding to get a credit card one should shop the offerings well. The following should be looked at when deciding on a credit card:
• What is the rate of interest?
• What if any terms apply to transferable balances. Try to find credit cards that offer 0% or low interest terms on transferable balances.
• Beware of credit cards that say in there terms that there is a activation fee. Activation fees should only apply when the card is of a secured type. Any other credit card should have no or a very low activation fee.
• Stay with mainstream financial institutions that can offer very preferable rates and have what is usually the going rates on interest.
• When shopping for credit cards, inquire if there is a transaction fee per purchase, or a monthly service fee. Be very aware of all terms that outline these costs to the consumer of the card.
Determine if the card limits meet your needs. The rule of thumb is” ask questions”.
Always obtain a monthly statement that accounts for purchases, debits and credits. The preferable method is a hard copy for financial record keeping. A electronic statement is just as well as long as the statement is available in a printable format. Credit cards that offer low opening APRs are a great idea especially if you the consumer can pay off your credit debt in short periods of time that match the offering of the card. Most importantly, manage your credit limits and obligations on the credit card wisely.