how to choose credit card
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Things To Keep In Mind Before Choosing A Credit
Card
Why Do You Need This Credit Card
Prior to obtaining one, it is necessary that you decide why you need a credit card. Credit cards are available under different categories and each category is designed to serve a specific set of needs. Make sure the one you’re choosing meets your needs.
How Much Do You Plan To Spend With Your Credit Card
Choose a card depending on how much you plan to spend with it. If your estimated spending is likely to be high, then it is wiser to go for a card which offers premium benefits and high rewards. If you are not likely to spend much with your card, then it’d be more sensible to go for a basic card which features minimum fee.
Interest Rate Applicable On The Card
Depending on usage, interest rate or Annual Percentage Rate may or may not be a factor in choosing a card. If you plan to pay your bills in full each month, then interest rate would not be a major deciding factor. However, if you’re more likely to carry forward a balance to the next month, then you would want to choose a card which features low interest rates.
Fees and Charges Associated With The CardAs it usually happens, premium credit cards often carry a hefty annual fee associated with it. Compare that with basic credit cards which feature minimum fee and charges. When choosing a card, make sure you find out the details about all the fee / charges which might be expected to pay.
What Benefits Do You Want Your Card To ProvideCredit cards are available in different categories to address specific needs like travel, fuel, utility, shopping, groceries. Entertainment, premium and more. You must decide the purpose of use before choosing a particular credit card.
Credit Limit Allowed On This CardCredit limit is the maximum amount which you are allowed to spend on your credit card. Different cards carry different credit limits. A high credit limit is always beneficial but only when you plan to pay off your bills on time, otherwise it could lead to accumulating bills and eventually debt.