Posts Tagged ‘Annual Percentage Rate’

Getting your own credit card is not as easy as you may think. Applying for a credit card account needs a lot of thinking.

Before marching down to your credit card agent, ask yourself some questions like do you want to pay for the credit every month or carry a balance instead? The type of credit line limit is also to be taken into consideration. Credit cards offer a lot of benefit packages, think of the package that would suit your needs.

If you want to carry on a balance, look for the credit card that offers the best interest rate or the annual fee offer. However, if you intend to pay for the credit every month, then look on the one that offers the lowest interest rate.

Credit limit determines how far you can go with your card. Think of the lowest limit that would fit your needs, not your lifestyle. Remember its supposed to be for necessity and not for luxury. Adding 30% to the limit you agreed on. This will maximize the value of the card. Meaning, you can use the card on a normal basis and still have enough value if an emergency arises.

Credit card companies offer tremendous bonuses on their cards. If you wanted to sign up for these packages, think, think, and think! Will they really be of help to you or are they just there to make your credit life miserable?

Of course the table is laden with different courses. You are only to get one so dont rush into one that looks good. You always have the liberty of comparing one credit card to another.

Always choose the credit card that offers the lowest annual percentage rate (APR). APRs could either be a fixed or a variable rate. Fixed rates do not change as the name implies but is higher. Variable rates changes depending on the economic trends. This is to be taken into consideration if youre deciding on carrying a balance.

Some credit cards offer a grace period of 25 days before they charge the interest on the purchase. But some may not have. Look for those that have one and the longer the grace period, the better the deal.

You also have to check on other fees attached to the credit card. These are the penalty rates as well as other charges like over the limit charges and late payment charges.

When choosing a card, always remember to get the one that would best fit your needs and at the same time the best deal you could get out of it.

If you are new to the world of credit cards, then you need to know the basics before going ahead and choosing the right credit card. Although all the terms and companies offering cards can seem confusing at first, if you do your homework then learning the basics takes no time at all. Here are some hints and tips regarding the basics of using and finding a credit card:

Borrowing money

Credit cards are probably the most common way of borrowing money. Credit cards are available from so many different sources, both offline and online. There is a wide variety of different types available, and at first glance it can be very confusing. However, what you need to remember with all credit cards is that you are borrowing money, and that the credit is not free. Once you realise this then you will be in a better position to get a card that suits your needs.

Interest rates

Unless you intend to pay your credit card bill off in full each month, then you need to be aware of the interest rates of cards. The rate is calculated as APR, or Annual percentage rate. The typical rates right now are around 13-18%, depending on the company you choose. Lower interest rates are obviously better, but remember that there can be other charges as well such as late fees or transfer fees, etc. Also, if you are going to pay the money off very slowly, then you should look at other types of money lending as credit cards do have high interest rates.

Paying your bill

The options for paying your bill vary, and some cards have different requirements. A few cards require you pay the whole bill each month, but most only require that you pay a minimum payment. This is usually around 2% of the entire balance. If you are not paying back your card in full each month, then pick a card that has benefits for doing so. Some cards offer cashback of around 0.5% or more, meaning that you get money back each time you buy something.

Fees

Most credit cards have a range of fees that you will be charged. These include fees for late payment, over-limit fees, and annual usage fees. If you know you might be late with payments sometimes, then pick a card with low late fees. Also, try and avoid cards with annual fees, unless the rest of the package is very good. Some cards have introductory offers, like no interest or fees on transfers for six months. These cards are good if you need to transfer debt or you know you can pay back the balance during the introductory period.

Debt

Remember, if you are not careful you can get into credit card debt that can be hard to get out of. Only spend what you can really afford, and try to pay back as much of the balance as you can each month. Credit cards are great for emergencies or spreading the costs of expensive items, and if you know the basics then you will get a better deal on your card.