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Credit cards are a convenient method of paying for purchases. It is an easy alternative to carrying around cash. They provide money on credit which should be repaid periodically. The failure to pay this balance would incur finance charges. It is wise to maintain a clear balance or at least prevent it from surmounting. There are various types of credit cards each one designed to cater to different situations such as student card, business card etc. one should explore all the options available. He should conduct a complete survey of the various types of credit cards and then make a decision on the card that suits his needs and requirements. For a first time owner of a credit card it might be an overwhelming feeling as suddenly everything seems affordable with a mere swipe of a card. Caution should be exercised as one can end himself in a pile of trouble if he uses the credit card in a negligent manner.
Mistakes to avoid
The following methods are a guide for those who are considering a balance transfer card. One has to be mighty careful before going in for such a card. The terms and condition should be read between the line as the repercussions could be great, hence one should tread carefully. They are a great way to lift you out of debt but going in for one blindly, neglecting the terms and conditions could land you in a bigger debt.
One of the main features to look out for in a transfer card is the rates of interest. Few have a very low rate of interest to entice the customer. They offer this promotional rate of interest for a particular period. If this period were to lapse with the incomplete payment of the balance the rates of interest increase proportionally. This would spell dooms day for an individual who is already in debt. Few cards offer a low fixed rate of interest throughout. This would be a better option if you aren't sure weather you'll be able to pay the balance before the stipulated period as imposed by a promotional scheme.
One must continue to pay the credit on the card he owns until the transfer card is ready. This period can range from a couple of days to several weeks. A common mistake that is committed is the discontinual of the payment in the precious card. This should be avoided. Keep a constant tab on the outstanding balance and continue to pay them until the transfer card has cleared.
Once the transfer has been sanctioned make sure that you pay the charges due on or prior to the specified date as determined by the transfer card. Correct all your mistakes that you had committed with your previous card.
If you are sure to make credits even after the transfer then you should look for a card that offers you the best and lowest APR.
Don't cancel your precious credit card. The credit utilization ratio has a major impact on your credit history the loser the utilization ratio the higher the score you will gain.