Credit Card Lowdown: Choose the Right Credit Card

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Choose the Right Credit Card

Before taking any credit card, we should find out whether that particular card suits our requirement or not. You should make the credit card work for you instead of you running behind piles of debt. Which card suits you best depends on your spending and repayment capacity. If you are using a credit card for day to day expenses like petrol etc and are paying off debts regularly without fail, you should go for zero annual fee and interest free period. Also check whether you want to go for cash back or reward points based card. If you occasionally carry a balance forward, go for a card with low standard rate. If you rarely pay the full outstanding in each month, you should go for introductory purchase rate or ultra low standard rate. If the debt has piled up, go for cards with the option of low interest rates and low balance transfer rates. It is tough to get a credit card if you have no previous history or too many arrears and defaults. You can get a card in such a situation but the interest rate will be decided only after assessing your circumstances. Bytestart.co.uk Reports:

As an example, a person transferring a £2,000 balance from a credit card with a standard APR of 14.9% to a credit card offering 0% for 9 months would reduce their outstanding balance by £630 providing they repaid £70 per month and did not add to their balance. During the nine months they'd also save £202.55 in interest charges, proving that transferring your balance to a 0% credit card really does pay.

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September 1, 2005 in Reviews | Permalink