Everyday people are being bombarded with a host of credit card offers in their mailboxes. In order to get to the card of their choice people have to wade through lots of information be it in print or otherwise. It is advisable to check all the options available and read the fine print before choosing a card.
Here are some tips and guidelines to follow while choosing a card. They are as follows:
• Always avoid a card which carries a monthly fee or for that matter even an annual fee. Here the logic is simple. Why would one want to use a card and their related services if one has to pay money and then subsequently the interest also?
• There are many card companies that charge extra money for their award points programs. Don’t opt for these cards as there are companies that would be willing to offer awards just for using their card. Don’t pay for the point system.
• Make sure to check the interest rates that would be applicable after the introductory offer period. Many companies offer low interest rates for a 6-month period or a period of one year (introductory period). After the end of the introductory period the interest rates should not be much higher than the rates on the prevailing card.
• It is advisable not to have multiple accounts in multiple banks. If one has a loyalty to one particular bank chances are that the bank will offer better interest rates as they are interested in doing business with the customer and will do everything to keep the customer from going elsewhere.
• Some banks have much higher ranking points as well as awards for having more than one account with them. Points are offered on the use of debit cards as well. So it is wise to use the debit card like a credit card while making purchases.
• Always ensure that the interest rates being charged are appropriate. Most often customers do not bother to check the interest rate that has been charged in their monthly billing. With the present regulations card companies are expected to issue a notification before hiking interest rates. A 45-day notice period is mandatory after issuance of the notice. However, interest hikes could go unnoticed if one is not vigilant. If there are unnecessary interest rate hikes then it would be wise to opt for a card that charges less.