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How to choose the best credit cards from all the options available?

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Credit cards are better known as “plastic money”. These are cards that give its users unlimited options of transaction. Credit cards have become increasingly popular due to the following features that benefit its users

1. It facilitates cashless transaction.
2. Users do not have to worry about theft of money.
3. Because of cashless transfer, the user gets time to repay back the money on time without incurring any additional interest rates.

It is however natural, that whenever a loan or a credit is taken, it is bound to have some interest rates attached to it. The different financial organisations as well as the credit card companies offer different interest rates on credit cards. This is done to attract customers.

When a customer chooses a credit card he must consider the following points

Be proactive in the selection of the credit cards. There are numerous credit card offers that will fill your mail box on the internet with exciting and many attractive offers. Before making a deal with a credit company on the basis of these mails do remember that most of these mails are promotional activities and do not clearly state the terms and conditions attached with the credit. It would therefore be best to visit financial institutes as well as the different sites on the internet to know the features of the credit card.

Understand the need for using a credit card before applying for one. Credit cards can be used for different purposes. If you are starting to set up your own business then you will need a business credit card with greater cash limits. In case you are applying for credit cards for your personal use then you would not need such huge credit limits. Understanding the need will help you to set your budget and then apply accordingly for lower interest credit cards.

Make a note of the annual percentage rate or APR of the credit card company. When a customer fails to repay on time, his credit account will attract a certain interest rate called the APR. The APR varies from company to company; hence, choose a card with the lowest APR.

Keep in mind the grace period offered by the credit card company. Every financial institute offers a time period within which if you repay the loan amount, no interests will be added. Look for credit cards that have an extended grace period.

Companies offer cash back and other offers to attract customers. Such options will help in lowering or benefiting from a loan account.

Finally keep a track of the finance charges levied by the company. The lower the finance charges, more beneficial will it be for the customers.

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For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
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