Choosing The Best Credit Card To Apply For
Always shop around to get the best deal when choosing which credit card to apply for. If you don't do your due diligence you could end up with a card that has too high of an interest rate, that has an unnecessarily high annual membership fee, etc. Here are some things to look for when checking out the different credit card offers you may receive in the mail.
1. Credit Card Terms:
When using a credit card you are in effect borrowing money from the credit card company. The terms and conditions of credit that you agree to when you apply for the credit card will affect your overall cost. Compare terms and fees before you apply.
2. Annual Percentage Rate:
The APR is the yearly rate that is charged for money borrowed on the card. It must be shown on the application and on billing statements. Some plans are "variable rate" programs. They can change with interest rates or other economic indicators. Some cards also have a short term low interest rate fee that rises 3, 6, or 12 months after you have had the card. Does the card you are looking at getting have this and if so what will you be being charged(APR) after the rate goes up.
3. Free Period:
Do you start getting charged interest from the moment you use the card or is there a "grace period," a free period that lets you avoid finance charges by paying your balance in full before the due date. A credit card can be a real nice way of getting "free" money. You do have to watch out though for the cards that don't offer the "grace period." If your card includes a 'grace period', the issuer must mail your bill at least 14 days before the due date so you'll have enough time to pay.
4. Annual Fees:
What annual membership or participation fees do you have to pay. Most cards have these fees.
5. Transaction Fees and Other Charges:
Many other fees can also be added onto the card and knowing these can make the difference in having a card you want and one you could quite easily live without. For example: some issuers charge a fee for a cash advance, if you make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.
6. Other considerations:
How high is the credit limit?
How widely is the card accepted?
All these tips can help you get the best deal when shopping for a credit card. Just remember to look at the fine print on anything that you sign. This is the easiest way to come out the winner and getting the card you truly want is what it's all about...Because Money Matters
James Mercer runs the Because Money Matters blog, http://www.becausemoneymatters.blogspot.com. It is updated each day Monday-Friday giving advice on financial matters that are important to everyone. From credit cards, home loans, stocks, commodities, to scams and scammers that are trying to rip you off. Come on in and check out the advice that could make your life much richer.
MORE RESOURCES:
 China Daily | Stock markets end week of credit crunch worries Newsday, NY - Credit-crunch worries continued to weigh on US stock markets Friday, but the hemorrhaging evident for most of the week was contained. ... Video: Stocks Fluctuate After Fed Corporate Debt Plan Paulson OKs Bank Stock Purchase Plan Easy credit and financial crisis |
 AFP | Tighter credit card limits add to woes MiamiHerald.com, FL - Now credit cards may become the next focus of the credit crisis. BY FRED TASKER Maria Osorio, 62, of Sunrise, never meant to run up her credit cards the way ... Credit Crisis Collapse What Happens Next? Regional financial experts focus on lending; say credit crunch is ... Market news this week for strong stomachs |
 Boston Globe | Global leaders seek answer to credit crisis San Francisco Chronicle, USA - At the same time, loan markets everywhere remained broken, especially the critical wholesale credit markets, in which financial institutions lend each other ... Video: Bernanke: More Economic Pain Ahead TREASURIES-Surge in Europe as shares skid on credit woes Stocks down despite government moves to free up credit |
 The Associated Press | US will work with partners on credit crisis: Bush CBC.ca, Canada - It was the 21st time in 26 days that the president has spoken publicly about the credit crisis gripping financial markets and dragging down stock markets. ... Meeting G7, Bush Vows World Economic Fix |
 China Daily | Lehman Credit-Default Swap Payout Could Climb as High as $365 Billion Washington Post, United States - By Heather Landy NEW YORK, Oct. 10 -- In what may shape up to be the most expensive payout ever in the credit-default swap market, sellers of insurance ... STOP FINANCIAL WMD'S: Credit Default Swaps Insurance on Lehman Debt Is the Industry’s Next Test Lehman Credit-Swap Auction Sets Payout of 91.38 Cents (Update1) |
Is my credit union safe? Los Angeles Times, CA - By E. Scott Reckard, Los Angeles Times Staff Writer The government-run National Credit Union Share Insurance Fund insures most deposits at credit unions, ... Got Your Money in a Credit Union? You Too Are Safe In tumultuous financial times, credit unions might be an option to ... LETTER: Your money is safe with credit unions |
Fears Grow That Tight Credit Could Crush GM, Ford NPR - Standard & Poor's downgraded the credit of both companies and their financing arms this week. AFP/Getty Images Ford F-150 trucks sit at a dealership in ... Video: Money Minute: GM, GE, Oil GM, Ford too big to fail? CREDIT WATCH HITS GM, FORD |
Financial troubles spread to credit unions Los Angeles Times, CA - By E. Scott Reckard, Los Angeles Times Staff Writer It's not just giant banks on the brink these days: Losses are clobbering nonprofit credit unions that ... |
 New York Times | Credit cards, credit crunch: consumers feel pinch as issuers `go ... Newsday, NY - The credit crunch and weak economy also are taking a toll on credit cards. Perhaps you have noticed that you're receiving fewer offers for credit cards in ... Your Money One Thing You Can Control: Your Credit Score |
 Boston Globe | Transcript: President Bush's Radio Address FOXNews - The Fed has joined with central banks around the world to coordinate a cut in interest rates — a step that should help free up credit. ... Text of Bush's remarks Friday on the economy Comprehensive strategy to tame crisis: Bush Bush says financial rescue plan big enough to work |
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