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Choosing a credit card company that will offer you a great deal can be difficult. With all the "good" offers out there, it can be tempting in trying one. And then you jump from one company to another because you can`t seem to make up your mind. This will be a traumatizing experience for you especially if you don`t know the basics of using credit cards. You should know these tidbits first before you start choosing a credit card or before you go swiping your card all over the place.
What is APR?
APR stands for "annual percentage rate". Easily said, it is the amount you have to pay your card provider in exchange for using their card. It is a charge for the services that they are offering you. Different companies have different APR`s so be careful. You can`t expect all companies to have the same rates for their services.
How do I pay my bills?
The card provider will usually explain this to you as you apply for a card. You can use online banking or other different modes of payment. It all depends on the company`s policy about bill payment.
Can I just pay whenever I want to?
Sadly, no. Card companies charge penalties on late and skipped payments. This is to make sure that delinquent customers pay their bills on time. If you don`t want to make additional payments, you should always look at paying on time.
What are introductory rates?
This is more like a promo rate as you start using your card. Companies usually put on tempting introductory rates to lure in consumers. They usually have very low starting interest rates; some may even offer 0% starting rates for the card service. But be careful of this, as the word "introductory" says it, it is just for a period of time. You should ask for how long it will last.
And if you already know all of these, you should now know how to choose your card offer.
What makes a good card offer?
First, you should check the reputation of the company that is offering the card service. Make sure that the company that you are going to choose is reliable and won`t dupe you during the process of using their card.
Second, look at their policies in making business. Make sure you read every clause of the terms and agreements. Not reading the fine print is a common mistake that most people do when choosing cards. It also proves to be the biggest mistake. Surprising continuing APR`s and small rewards are some of the setbacks that people see after NOT reading the terms.
Of course, low permanent APR`s and good bonuses or rewards are always a plus in a card offer. You should also look at the perks of the card; whether you can use it for lots of different things asides from shopping or making payments.
No hidden charges won`t hurt either. Having unexplained or unnecessary payments in your card will only mean disaster of getting debts in the end. Hidden charges will be avoided if you thoroughly read the terms of the card offer.
Also, be sure to research all the possible offers that may suit your spending patterns and capabilities. Make sure to compare other companies and offers to be able to make the most out of the deal. You can also make use of professional advice of you think you still have much to learn about the best credit card offers out there. Knowing more may prove to be a better move in the end.