Factors to consider when choosing a credit card

In choosing a credit card, consider your reason why you want to have a one in the first place.

06:26 01 October 2013

What is it for? There are plenty of credit cards available which are suitable for your needs. These credit cards are especially designed for various purposes. More importantly, before choosing which credit card is best for you, you need to assess yourself how you plan to make payments for your card. Will you be paying in full and on time every month? Or will you be paying for minimum amounts only?  By carefully analysing what each card offers, you may find the one most suitable for you.

What are the factors to consider when choosing a credit card?

• Annual Percentage Rate (APR). When you do not pay the full amount due every month, this will be the interest rate that is charged too your purchases. You should make a comparison of the APR of various credit cards and select the card which one provides the cheapest.  In addition to this, you may also check out their other offers such as reward points, fees among others.

 

• Minimum repayment. Every billing statement provides option to pay a minimum amount if you cannot make a full payment of what is due that month.

 

• Annual or Renewal fee. Most credit cards charge a yearly renewal fee for use of the card. If your renewal fee is charged in a particular statement and you fail to pay the full amount due that month, the annual fee, along with your balance shall incur interest.

 

• Other Charges. Analyse terms and conditions when you apply for a credit card. You should verify other charges they may impose on you such as when you go over your credit limit, when you use your credit card internationally and when you make late payments