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How to shop for a credit card

By: alphafinance0 comments

These days, a credit card is a must-have accessory for everyone and is even considered as good as cash. And so, if you are looking for a new credit card for yourself or just helping out a loved one shop for one, look into the following to make sure you are getting the best deal:

Balance transfer options

The first thing you need to ask yourself when shopping for a credit card is why you want it in the first place. Some use the new card to help them pay back some previous debts. If this is the case, then you will want to look into the balance transfer options available for the card you are considering.

Cards with balance transfer options are best suited for those with debt consolidations, and these cards typically come with competitive interest rates. Find one with the best interest rate so it will be easier to pay back your other debts.

Honeymoon and retroactive interest rates

Honeymoon interest rates refer to credit cards offering a zero per cent interest rate for the first year of membership. This is a marketing ploy to get people to sign up, and once the year is up, you will be subject to interest rates you are not prepared for.

Another thing to watch out for is retroactive interest rates. That means applying interest to previously bought items even during the honeymoon period. If you see a credit card offering honeymoon interest rates, look for other options.

Extra Fees

It’s important to keep track of where your money goes. However, that can be hard to do especially if you don’t see what your credit card is charging you.

Credit cards are more than just the amount you spend each month before needing to pay it back. They will also charge you an annual keeping fee, late payment fees, as well as cash advance charges among others. It’s important to find out everything you can about the card and how their extra fees function.

To do that, you can either look it up online or ask people who have the specific card you are looking to get.

Rewards program

Credit card providers typically offer their services together with a rewards program. Each provider offers a different type of rewards program depending on which card you choose to get. If you’re a frequent traveller, then you may benefit from a frequent traveller rewards program where you can get great perks like seat upgrades and more.

If you drive a lot for work, a card with a petrol rewards program might be best suited for you. Especially if it offers discounts every time you are looking to fill up.

These are just some of the things you need to look into more if you want to get the most out of your new credit card and use it for your next purchases and more.

Another thing you can use your new credit card is using it to make your payments for your car lease. Speaking of paying for things, don’t forget to pay your credit card bills as needed so you can maintain a good credit score for the future.

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