As per a report in the United States, credit cards are the most common method of finance. There is a wide range of credit card companies that offer credit cards ranging from everyday cards to business credit cards. However, choosing a credit card is a great deal, as you need to pay for each and every service you are using. If you make a wrong choice you would end up paying more than you owe or may be stricken with other financial miseries.
Credit Card experts say that before you apply for a credit card ask yourself why do you need one. Do you want a credit card for securing yourself against mishappenings or maybe for some other reason? For an instance, most of the people in the U.S own an in-store credit card that lets then shop without any limits. Whatever the reason maybe you must create a plan for securing your self against financial crisis.
Ask yourself whether you have the capacity to repay your credit card bills
Credit card companies typically ask the owners to pay a minimum that is 5% of their outstanding balance in order to save from penalties. Howbeit, you need to pay a high amount of interest on some card while some put on low interests. If you are late with your payments late payment charges can be as high as $40. Therefore, before you get a credit card inside your wallet you need to figure out if you can repay the bills without any financial hurdles.
Does your Credit Card have any Easy EMI Option?
All credit cards do not have interest free EMIs that let you purchase a costly item and them repay the amount in a few EMIs. This is one of the most useful features of a credit card. If your credit card has this option then you must opt for it.
Think before you apply for a co-branded Credit Card
In-store credit cards are the trend these days. Every brand is offering a credit card to its loyal customers using which they can shop at their store. We recommend that before you get a co-branded credit card you need to check whether it makes sense. Do not apply if it limits you to that particular store.
Flexible in terms of Payments
Many credit card companies sell credit cards that enable the owners to pay in multiple billing cycles as per their convenience. Therefore, you can select a date of payment as per your payment date or the date when you get your salary credited in your bank account.
The number of credit cards you must keep in your Wallet?
There is not a rule of thumb that bond you to a limited number of credit cards one should keep. What is healthy for your financial life depends on your earnings and expenses. Suppose you are a frequent traveler as well as a business person, then you should have a travel credit card as well as a business credit card.
Keep these factors into mind then decide which credit card is the best for you.
