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Which is the Best Consumer Credit Card for you?
You may think that all credit
cards are the same, but this is not in fact true. This is just like saying that
a dented, roughed up van from sometime back in the 1970’s is pretty much
the
same as an SUV made in 2007.
Terms and conditions vary from credit card to credit card, so you have to be
careful.
The credit card industry is an
extremely competitive one, with different companies bombarding you with
advertising like there’s no tomorrow trying to show each other up. In order
for you to get a deal, you do have to pay attention to the terms and conditions
that are included in the fine print.
Naturally, you want the card that
is going to end up costing you the least. So what you want is one with a low APR
(Annual Percentage Rate). The APR is the interest that is charged on the balance
of your card at the end of each month, so the lower it is the better for you.
Also, you have to be able to keep
up with the payments. As long as you manage to make the minimum payment on time
then all will be well and your APR will stay at the same rate, however, miss a
couple of payments – whether they are just late or not paid at all – and
your card’s APR might increase as some companies do this.
The problem then is that yes,
whilst your APR was lower until you were late making a payment, now that it has
been upped into the 18-22%, it’s not going to drop back down again just
because you make the next payment.
As an example, say that you’re
a good credit risk and you always manage to make the monthly repayments in time.
In this case, a card that will give you a bonus for doing this could be very
handy. There are cards out there that give out bonus “points” which you can
use for buying gifts, in restaurants, at the movies, buying things online and
other things.
With a card like this, you’re
earning as you spend. All you have to do is buy things with your card and you
get some extra stuff for free! If you charge everything to your credit card and
make sure that you pay it off in full each month then you might even be able to
get yourself an airplane ticket to anywhere in the world with the points
you’ve earned.
The fastest way to get a credit
card for yourself is online, as all you have to do is quickly fill in the online
form and then wait for approval, which only takes a couple of minutes as long as
your credit rating is in good condition.
Some companies will give you a
small opening limit after you have been approved so that you’re able to shop
online right from the off. This is called instant credit as your actually credit
card will take some time to arrive through the post, usually between seven and
ten business days.
You might also be able to find
yourself a good deal online if you already have a credit card but it has a high
APR. There are many cards that will offer you a 0% charge on balance transfers
– which is when you simply transfer the balance from one card to another. This
0% will usually last for six months, so it can be a good way to make up for all
that high interest you have paid.
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