How To Choose And Use A Credit Card?

Credit cards are very useful in the sense they are very convenient to carry and use, instead of carrying a bunch of currency notes in your wallet. However if it is not used properly you may land up into huge debt.

Some of the important points that you should consider while choosing a credit card are:

1) You should first understand the credit terms. You should find out what is the Annual Percentage Rate (APR). A credit card may be offering very low APR in the beginning but only as an introductory offer. It may go after the introductory period ends. 5% APR is considered low, whereas 21% is considered to be high.

2) Find out what is the grace period; banks will not charge any interest if a bill is paid during this period. Most of the banks offer 20-25 days grace period.

3)Find out the annual fee that the company will charge. Some companies may not charge an annual fee.

4) Find out the transaction cost. Fees that you have to pay for cash advance, late payments etc.

Now you can compare and analyze the various offers you have.

Whenever you make a purchase, keep the receipts with you until the bill is settled. Always protect your card from any misuse.

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There's really no correct answer to that. All credit cards are the same. All the lenders that issue the credit cards already check out how they will get the appeal of the people/applicant to pick their business. The secret on credit cards though, is maintain a credit card just like maintaining yourself. Do not apply for so many credit cards for this will affect your credit history later. No matter what kind of credit card you have, treat it as your saviour when the need arise. Use your credit card wisely and sparingly. When you borrow, try to pay for all of the balance after a month or on the first bill. Do not borrow big amount on your credit card and pay for it forever because it will take you down especially if you are just a student. Credit Card is a good thing to have so don't abuse it and don't let anybody use your credit card.

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