How To Choose The Best Credit Card

Choosing the best credit card for your needs may seem like a difficult task. With so many offers and promotions out there, it can be hard to determine which will be the most beneficial to you. There are few questions you can ask yourself when you begin shopping for the ideal credit card.

What is the Annual Percentage Rate?

The Annual Percentage Rate (APR) is the amount of interest you will be charged for your credit card each year. This rate is divided by 12 to determine how much interest is charged each month. These rates can vary with the common range being 12% to 24%, depending on the promotion at the time. If you pay your card off in full before it becomes due each, no interest will be charged.

Are the Fees Reasonable?

Credit cards come with a variety of fees that will be rolled into your monthly statements. Read the fine print of each application to choose the best credit card with the most reasonable fees. Rates to consider include the APR, late payment fee, annual fee, and balance transfer fee. Some people can overlook this tiny writing, costing them big time if they miss a payment or wish to transfer the balance of another credit card.

Does the Card Offer a Flexible Spending Limit?

The best credit card is one that you can adjust the spending limit on. Most card companies will initially approve you for a certain amount. If you are happy with the limit, then nothing should be done. Over time, companies will automatically increase your spending boundaries to allow you to spend more. If this is a concern to you, choosing a card that offers you the ability to decrease your limit at any time will be beneficial.

Are Rewards Offered with the Credit Card?

Many department stores offer rewards in coupons and discounts after spending a certain amount. Other credit cards provide their users with a points system, with the ability for the users to redeem the points for cash or prizes. Still other cards offer a cash-back reward program. Make sure the reward program a card offers will be valuable to you before applying for that certain card.

Locating the best credit card for you can be made easier if you consider a few factors. Think about the interest rates as well as fees associated with a card before applying for it. Determine if you want to have control over the credit limit provided by the company. Also, check out any reward incentives offered with a credit card before making your decision.

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