Are you planning to get a new credit card, this year? If you are then, choosing the right credit card can prove to be a real challenge. After all, there are plenty of choices you will surely find in the market.
Still, there are great suggestions you can use to boost your likelihood of receiving one that will match your needs, spending habits, and budget. To find out what they are, just read on.
Fees and Interest Rates
Of course, you’ll want a credit card with a reasonable interest rate and fees. But watch out for credit cards with teaser rates and promotional offers! See to it that you do not make a choice based on the teaser rate alone.
When the introductory period expires, what will happen to the low rate? Will you be stuck with a high-rate card? How long will the low rate last and how much will the regular APR be? Does the credit card charge other fees to make up for the low rate?
Keep in mind that promotional offers are not meant to last for a long time. Before making a decision, carefully consider the long term implications of your decision. {GOOD READ: Managing Your Credit Card for Business Effectively}
Terms and Conditions
Credit card companies are mandated by the law to reveal all terms and conditions in the credit card agreement. This is why consumers are strongly advised to spend time and effort reading the fine print. True, the very small texts and the lengthy agreement can be discouraging to read. But if you want to make sure that you’ve found the right credit card, never overlook this very important step.
Credit Card Disclosures
What are credit card disclosures? These are specific statements usually found at the bottom of the Terms and Conditions page. These statements disclose or explain the exact rules, pertaining to some offers that are marked with an asterisk or other symbol, indicating that the offer is subject to certain conditions.
For example, let’s say that the credit card offers a zero introductory rate. You will find an asterisk or symbol at the end of the statement, which means that the zero APR offer is only applicable if the credit card issuer’s requirements are met.{GOOD READ: Should You Have Multiple Credit Cards}
When you read the disclosure, you may discover that the zero introductory rate will only apply for cardholders with good to excellent credit scores. If you have an average credit score, you may not qualify for this offer at all.
Hence, it’s very important to read the fine print, particularly the disclosure statements before signing up for a credit card. The offer may not be as good as what the advertisements try to make it appear.
