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There are innumerable people applying for credit cards every single day. The increasing number of credit card offers flooding the inbox every day instigates people to apply for them since the deals seem irresistible. Though there are a few cards that are indeed worth signing up for, there are a few others that are best avoided. In order to know the credit cards that are worthy and the ones that are not, it is important to understand the various features of the credit card that make a difference.

The primary feature of this plastic card is the type it belongs to. Considering the ever growing needs of people all over the world today, card issuers are working overtime to come up with cards that cater to these needs. Some of the main types of cards that are available for people to choose from now are the secured credit cards, unsecured cards, premium cards, rewards cards and student cards. Each of these cards have their own set of terms and conditions that vary based on the audience they cater to. While student cards are specifically for students who want to apply for their first card, the rewards cards are for those who travel frequently or indulge in a shopping spree at regular intervals of time.

The credit limit on the credit card is another main feature. This is the limit up to which the bank allows the consumer to spend on his/her card. The credit limit varies from one person to the other based on many factors. Some of the main factors that influence the credit limit on the card are the age of the person, their credit history and, in case of secured cards, the amount paid as a security deposit. The credit limit offered to a person increases when they display good financial management and make their payments on time without defaulting on their dues.

The annual percentage rate and the grace period are the two other traits of credit cards. The APR is nothing but the interest that the customers have to pay to banks for the money they use on the card. This interest rate also varies from one card holder to the other. You can avoid paying the interest if you repay your dues in full within the grace period. This is the period that the lenders offer customers to clear their dues without incurring any extra charges.