Applying for your first Credit
Card
Chosing your first credit card can be
a very daunting task or can it. We have put together
a brief guide to help you decide which credit would
best suit your needs. Do not know the credit lingo
can lead to unforseen circumstance, know the lingo
can lead to financial benefits.
Credit
cards are now a way of life for people all over
the world. In fact, studies have shown that there
are nearly 1.2 billion credit and debit cards are
in use in North America alone, and the number of credit
card users is on the rise every year. If you are planning
to apply for a credit card, here are few tips to help
you make an informed decision:
APR (Annual Percentage Rate)
or Interest rates
APR stands for low
interest rate credit cards. This is applicable
to payments that are spread across a period of time.
For example, if you buy a product for $1200 using
your credit card, and choose to pay off the amount
over a period of twelve months, you will end up more
than just $100 a month. The credit card company will
charge you interest for making the payments as EMIs
(Equated Monthly Instalments). The interest rate is
calculated and projected annually (even if you plan
to pay of the loan in 6 months). Before accepting
a credit card, make sure you read the paperwork involved
and understand the APR. Look for a credit card that
is charging low interest rates, the average credit
card interest rate is around 18%.
Annual Fee
Before you start using a credit card, check to see
the annual fee associated with the credit card. The
annual fee is the amount you are expected to pay to
keep a credit card active. Even if you do not use
the card for a single transaction, you will end up
paying the annual fees (if there is no
annual fee). Almost all credit card companies
offer credit cards without levying any annual fee,
you should make sure the zero annual fees is for life
(and not a promotional offer for a limited period
of time).
Look for a credit card that
suits your requirements
Credit card companies have credit cards designed to
offer users specific benefits. For example, students
can apply for a student credit card that has a low
credit limit and offers discounts at book stores.
Like student credit cards, travelling business executives
can apply for a credit card that offers frequent flier
miles on every airplane ticket purchased. Look for
a credit card that suits your requirements and is
offering discounts and reward point programs that
meet your needs.
Read the paperwork
Most people feel cheated when they find out about
hidden charges and fine prints. The truth is that
credit cards are one of the most transparent ways
of getting credit, and every single aspect of using
the credit card is spelled out in black and white
in the documentation. Before agreeing to use any credit
card, make sure you read the terms and conditions
completely. If you are not happy with the terms of
use or do not understand certain aspects of using
the credit card, do not hesitate to contact the customer
services department for a clarification. Remember,
there is no such thing as fine print when it comes
to credit cards.
For the best
credit cards visit our credit card comparison
page:www.credit-card-offers.com.au
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