Thursday, December 04, 2008

Comparing Credit Cards

Like any merchandise, you need to compare credit cards too before you actually make up one's mind on which one to travel for. The choice of a credit card should not be based just on what is good, since there is nil like a good credit card. Neither should it be based on the recommendations from a friend. The credit card that fulfils your needs is the 1 which is good for you. Something which fulfils person else’s need would not necessarily be good for you since everyone have their ain needs. Moreover, make not get bowled over by all the offers being tally by a peculiar credit card. A batch of them are just selling tactics and might not ran into your demands (and you can’t maintain changing credit cards each fortnight).

So the first measure is to measure why you need a credit card. List down all your demands and sort them as primary, secondary and Tertiary needs. Next, search for the credit cards that carry through most of your primary needs. Collect this information in the word form of a listing or a document. Now check these credit cards for what secondary needs they carry through additionally. By this clip you should have got short-listed 2-3 of credit cards (or maybe just one). Finally utilize your Tertiary demands to work out the tie-breaker.

The following are the things that you should see when comparing credit cards:

1. The APR: There is a short term as well as a long term APR. Short term APR is a marketing and sales maneuver and is used to entice new clients into signing-up for the credit card. This APR is offered for a short term just after you sign-up for a credit card. So you should really be looking at the long term APR.

2. Additional benefits: These could be in terms of price reductions at a peculiar store where you shop a batch or discounted car rentals or air menus etc. Again, based on your demands these may or may not be of your interest

3. Annual fees: Of course, this is your expenditure on credit card services and whether you utilize your credit card once in a twelvemonth or 1000 times, you will always have got to pay this fee. So it is a very of import factor indeed.

4. Credit limit: For heavy spenders, this is a very of import feature. Again, check your demands before basing your choice on this feature.

5. Rewards program: Some credit cards offer very attractive rewards program. These are the points you earn for disbursement on your credit card. Once you have got enough points you can swap them for commodity or service and even frequent circular miles.

6. Interest free period: If you are going to overspend on your credit card, the interest free time time period might be of peculiar interest to you.

7. Cash backdown fee/charges: These are the charges you pay when you retreat cash on your credit card. So if you mean to utilize such as a service, this volition be of interest to you.

8. Forex transition rate/fees: For people traveling overseas a lot, foreign currency transition rates will do a batch of sense. Some companies don’t charge a fee but have got pathetic transition rates which counterbalances for the fee.

There could be a batch of different offers and you might be enticed to travel for them. However, the cardinal is not to get lured by such as offers and to lodge to your demands when making a selection.

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