Credit Card Lowdown: What to Look for When Shopping for a Credit Card

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What to Look for When Shopping for a Credit Card

It is a smart move to shop around and research before going in for a credit card. Compare the different characteristics of credit cards offered prior to applying for any card. Your ideal card will need to meet your requirements across a broad range of criterion. For instance, if you plan on paying all outstanding amounts promptly each month, looking for a card without an annual fee will help you save some bucks. By contrast if you struggle to make monthly payments, a lower interest rate is vital.

Another deciding factor is the APR or annual percentage rate. There are different types of APR and these will determine how much interest you will pay if you carry over a balance or take out a cash advance. Reading the credit agreement closely should reveal these charges. Different credit cards also have different credit limits too. Some cards offer incentives such as rebates or cash back when you use your card or frequent flier miles or some other similar offer. This can be vitally important for those individuals who use their credit account for business. Federalreserve.gov Reports:

Credit card companies use one of several methods to calculate the outstanding balance. The method can make a big difference in the finance charge you’ll pay.