Right time to shop for credit cards

There’s no uncertainty that credit cards are extremely portable, ideally, they should be used as a temporary substitute for carrying cash. Often credit cards come with various discounts and additional benefits about which you must be acknowledged. However, when you decide to acquire a credit card, there are abundant elements to be reviewed to obtain the ace advantages for using credit cards.

Credit Limit

This is the amount of money that you are granted to borrow subjected to credit card without involving other costs. Depending on your credit history, the credit limit will be decided. You don’t want a situation in which you’re close to maximizing out your credit limit, as you are likely to attract the over-limit fees. It can hurt your credit score – and some credit card issuers have cut customers’ credit limits to an amount that’s lower than their current balance.

The interest rate

The interest imposed as the annual percentage rate on a credit card. You can opt either for a fixed rate or a variable rate that is bound to another financial symbol, usually the prime rate. With a fixed-rate card, you can predict how much you will be charged as it maintains the same interest every month; a card with a variable rate fluctuate every month. However, even a card with a fixed interest rate can change based on certain parameters, such as paying your card – or any card – late, or going over your limit.

Ease of balance transferring

Almost every credit card company provides the facility of balance transfer. Due to this option availability, you can easily transfer existing debt from one credit card to another as per the usability. The new card credit limit will be lessened subsequently. While transferring the balance, you cannot exceed 80% of the credit limit. The transfer procedure takes more than seven working days.

Fees and other penalties

Go for cards which offer moderate fees. Common charges include fees for transactions, such as balance transfers and cash advances, or for asking to increase your credit limit or paying your bill late. The annual fee varies among card issuers as well as cards depending on the negotiation at the time of purchasing the card.

Incentives

While using the card, one can earn reward points every time as an added benefit to users of credit card. These reward programs does not get expired and you can redeem them anytime as per the convenience. Assuming you’re going to make the purchases anyway – and the card issuer doesn’t charge extra for the rewards program – it can be a good advantage. Opt for a program that offers more elasticity and rewards you will really utilize.

Access to cash withdrawal

The banks gives an ATM PIN to the credit card holder as per to make cash withdrawal from your credit card easily. Keep in mind, doing cash transaction against credit card attracts the high interest rate from the ATM. However, it is suggested to use this facility at time of urgent needs only.

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