Understanding credit cards and the parameters that are important
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Cardholder Benefits » Understanding credit cards and the parameters that are important

Understanding credit cards and the parameters that are important

By
Add to Favorites:

Credit cards or plastic money have changed a lot in the way people manage their finances. However, very few people who use the card actually sit back and think for a moment, the amazing dynamics involved in the small plastic card in their hand. There are a lot of parameters that are involved in the credit card and one needs to look closely at these to find out if it is going to be of any help.

Annual interest rate

Also commonly referred to as APR, this is the first thing that customers should check when they look at a credit card. The APR is an important figure for those who have an outstanding balance month after month. Those who don't carry revolving debt don't need to bother about this interest and instead trade a low interest card for better rewards. Those who do have the revolving debt will end up paying a lot of interest if they don't choose their credit card wisely.

Fee structure

Fees comprise a major part of the revenues of the credit card companies. That is why, the fee structure is important for customers as well as credit card issuers. Those who are looking at a card should look carefully at the fees which are usually mentioned in the fine print. The current credit card reforms have restricted the initial processing fees to 25 dollars. There would be amendments bringing application and activation fees under consideration as initial fees too. Other types of fees include late fees if a customer misses the bill payment deadline, over draft fees for crossing the credit limit and most important of all, the annual fee which may or may not be waived off for the credit card customers. Balance transfer cards have something called a balance transfer fee as well, while spending on your credit card in a foreign country would incur a fees for currency conversion also called interchange fees.

Reward programs

To understand whether a credit card will reap any savings or benefits, one can look at the type of rewards that it offers. These reward programs vary from being simply namesake offers like loyalty points that can be redeemed at select stores on select merchandise along with various other restrictions, to profitable rewards like the cash back offers, where credit card customers get up to 5% of their expenses back. Other rewards include discounts on hotel rates, restaurant meals, entertainment tickets and airline tickets as well.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading