Choosing the right Credit Card

Credit cards have almost become a necessity and no wonder referred to as plastic money. If you have a credit card or if you are thinking of applying for one then are you well informed to take the right decision? Most important thing is to understand why you need a card. Next, identify if it is for personal use, business use or both. This will help you to narrow down your search. There are different cards available from various companies with numerous features and benefits, but you need to compare credit cards before taking the decision. You can compare them for the following:

One of the most important aspects of any credit card is its APR. The APR includes a one time cost paid when you actually take the card. There are many companies who have started offering zero APR on their products while some premium products still charge an APR.

The second most important factor is the monthly interest rate. The interest rate also varies from one card to another and one provider to another. There are many companies who will lure you with low interest rates. In such a scenario, you need to find out whether the interest is fixed or variable. A variable interest rate will change every year according to the market.

If you are going for a credit card to pay only for emergencies and you intend to pay the full amount of expenditure every month then you will have to look at the annual fee instead of the APR. Companies on a charge card levy the annual fee.

Finally, you need to find out whether the credit card is accepted internationally or not. Also, find out the number of ATM machines you can use to withdraw money. Is the card acceptable at other banking locations, supermarkets, shops, airlines etc.

If you compare credit cards in detail based on the above few criteria’s then it will be easier to take an informed decision.