How to Choose  Credit Card

By Yusi Setiawati

There are so many credit cards.  Before you choose credit card, you should know your purpose then make credit card comparison.  The credit card you  choose should reflect your lifestyle and your ideal spending amounts.  If you are looking for the best possible deal and the best company for your credit card, you will obviously need to look around at what you have to choose from and what works best for you.

1. Cash flow purposes.

With a credit card, you can make purchases and buy things, leaving your paycheck or other source of income in your bank account to draw interest.  This way, your money will continue to grow while you continue to buy the things you need.  Then at the end of the month, simply pay your bill.

2. Instant cash purposes

You can use your credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation.  If instant cash purposes is the reason why you want a credit card, you should look for one that has the lowest rate possible for instant cash transactions.

With a credit card, you will also need to think about the payments.  You will need to decide if you want to pay the balance in full each month, or only the required amount.  When you select your credit card, you should look at the introductory rates, balance transfer rates, and other offers that may apply to new credit cards and new holders.  Some will offer you truly amazing deals, especially if you have good credit.

3. The incentives

There are several cards out there that will give you incentives, such as reward points and even cash back with purchases that you can use towards paying back what you owe.  There are several incentives out there with credit cards, all you have to do is look around and compare the credit cards.

4. Look at and compare the APR (Annual Percentage Rate)

The APR is what you will pay on what you purchase when the incentive period runs out.  APR rates will vary among credit cards, so it is always in your best interest to compare and shop around.  The lower APR rate you get, the better off you will be.

5. The minimum payment amount

Most minimum payment balances will start around 3%, although some can be lower while others tend to be quite a bit higher.  The interest free period is a concern as well, as you will obviously want to choose the longest period that you can keep the payments down.

When you make that final decision and choose your credit card, you should always make sure that you know exactly what you are getting.  If you put some time and research into choosing your credit card, you will find the best one for you.  Please take care of your credit card and always pay the bill on time.

Apply for a credit card

Credit cards seem to have transformed our lives. In fact, one can term credit cards as a revolution. In fact, most people have multiple credit cards. Everyone seems to apply for a credit card. So, why should you apply for a credit card?

There are a lot of benefits associated with credit cards:

a. The most important benefit is the convenience that they offer.

b. Today most merchants do accept credit cards. So, instead of carrying a lot of cash on you (which is both inconvenient and unsafe), you can just carry a small piece of plastic with you.

c. You can get interest free credit i.e. you don’t have to pay the bills till the next monthly billing cycle.

d. You can buy now and pay later (when your salary arrives) – a great reason to apply for a credit card.

e. There are certain merchants that offer interest-free instalment payment plan i.e. you can make a big purchase today and pay for it in instalments on your credit card.

f. Credit cards works as instant long term loan too (not just a monthly loan).

g. Discounts on shopping. This is made possible by the tie-ups between credit card companies and the merchants. So credit cards offer many benefits.

You may want to read my others articles Credit card business and finance loan

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