Learn Features of the Best Credit Cards

Find out some basics about how to tell which credit cards are the best credit cards.

12:13 13 April 2013

When finances are tight, we sometimes turn to our credit cards to help us out of a bind. Depending on our financial situations and the types of credit cards we have, we may be digging ourselves into a deeper hole. Before you turn to that credit card to help you out, find out what makes the best credit cards to use and make sure you know which one to use if you have to use it.

 

Features of some of the best credit cards:

 

• Low interest rates—if you only have cards with higher interest rates, consider whether you are in a true emergency of if you may just need to shift finances around for a bit.

 

• Grace period—some of your best credit cards should allow you a period of time in which you can repay the amount without being charged any interest. If there is any way that you can accomplish it, you will save yourself quite a bit of money by doing that.

 

• Interest rate calculations—credit cards can be tricky, so even if the large print tells you that you have a low interest rate, you’ll want to double check how the interest rate works, if it’s variable or fixed, and if it is compounded. Most credit cards are compounded interest, so you won’t have much of a choice, but it’s good to familiarize yourself with how each company deals with payments.

 

• Late fee policy—makes sure that you’re familiar with the late fee policy. If things are already a little bit tight, sending a payment in late can cost you a hefty fee.  Try to ensure that you make your payments arrive before the due date. Another thing to note is whether or not a late payment will raise your interest. Many times the interest rate could just very high. Some of the best credit cards allow a couple of late payments before penalizing you, and the penalty interest is lower than other cards.