If this is your first time to apply for a credit card, deciding on which one to get can be complicated. Marketing ads can be misleading as all Issuers claim that they give the best deal. In this article, let’s check out the factors that you should consider to help you pick out which credit card is best for you:

The rate of APR. The annual percentage rate is the interest rate that you incur when you carry over a balance in your account. A low APR credit card reduces the risk of quick debt build-up in case you may have to carry over your balance from one month to the next. If the interest is too high, you may have a more difficult time paying off your balances.

The annual fee. There are credit cards that do not carry annual fees. Some cards with low APR may have high annual fees. If you do your own research, you can find no annual fee credit cards that also offer a considerable rate of interest. Of course, the best way to avoid the APR cost is to pay your balance in full on time.

The interest on balance transfers. The rate of interest on purchases and balance transfers may be different. If you want to use a balance transfer card to manage debts from your high-interest credit cards, make sure that the APR applicable to new purchases is reasonable as well. However, if you’re going to get a zero interest balance transfer card, make sure that you can pay off all your transferred balances before the 0% APR expires.

[Article: Getting the Best Credit Card for Bad Credit]

Transaction fees. Credit cards that double as debit cards may come with expensive per transaction charges. Each time you use the card to withdraw cash from the ATM, you may may incur expensive fees plus the cash advance interest.

The Grace Period. Don’t forget to check the grace period. Make sure that you will have sufficient time to pay back your balances before or on your due date.

The rewards. If you want to get a reward credit card, see to it that the reward program suits your lifestyle and spending style. Watch out for attractive reward offers that may be accompanied with expensive interest rates, hidden charges, or unreasonable terms. Also, take note that rewards credit cards are more likely to have higher APR than non-reward cards so make sure that you will be able to pay off your full balance on time.

About the Author
Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Credit Cards for Bad Credit.
Copyright 2010.

About Melanie Mathis

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. Connect with Melanie Mathis on Google+

Mail | Web | More Posts (366)