Factors often ignored while choosing credit card

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Factors often ignored while choosing credit card

Factors often ignored while choosing credit card

The content is accurate at the time of publication and is subject to change.

Choosing credit card could be a very tricky task. This could also be very confusing given the barrage of options that credit card customers now have. There are many credit card companies which provide credit cards with great reward programs and amazing deals. However, here are some of the factors which are important yet ignored by some of the customers.

APR on the card

Although credit card rewards like airline miles, cash back offers and loyalty points seem to be important, one thing that will be constant on your credit card is the annual percentage rate which will be charged on all outstanding balances on the card. You must be careful not to be lured to take a credit card, which has a very high APR, especially if you are one of those spenders who have an outstanding balance on their credit cards, month over month. The APR becomes an even more important number, and also frequently ignored parameter on balance transfer credit cards, where the introductory rates are all that matter to most credit card customers.

Card security

An increasing number of cases where card data has been stolen make the security features of the credit card very important. Some credit cards are better in terms of security in resisting cyber thieves. There are some good features offered by a few credit cards including 24/7 monitoring of the card spending and fraud detection. There is also zero liability insurance which covers for all fraud expenses reported over your credit card. The speed with which a stolen card can be reported, cancelled and a new card delivered is also very important, but often ignored.

The fees on the cards

The immediate benefits on the credit cards including bonus points for initial expenses, free tickets to various events, airline discounts and cash backs after the customer reaches a fixed amount of spending, take the attention away to more pressing parameters like the fees on the card. The annual fees on the card for example could sometimes be as high as 75 dollars and could eat significantly into the savings made through the card. Similarly, the activation and application fees levied initially, the late fee rules and the overdraft fees are all important and usually form a major part of the credit card issuers?revenue. Credit card customers would do well to pay attention to these factors as well apart from the reward programs offered on the credit cards.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related Research:

Top 5 Secured Credit Cards: September 2020 – Experts’ Choice

Top 5 Secured Credit Cards: September 2020 – Experts’ Choice

Posted: June 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Posted: May 30, 2020

We evaluated store credit cards offered by our partners to find the best store credit cards. They are often loaded with perks that will allow you to save on purchases at your favorite retailer. Plus, many store credit cards are available… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!