What Criteria Should I Look for in a Credit Card?
If you are in the market for a credit card there are some criteria you should consider before applying for any individual cards.
Remember, when you apply this adds an inquiry to your credit report, too many inquires is considered bad and should be avoided.
So what are some things to look out for? Fees: Different cards have different fees.
Some things you want to watch out for on your credit card are over limit fees and late payments.
These typically vary from $15 to $35, of course its best to stay under your limit and pay on time, but you should plan for the worst case and get a card with low fees.
Interest Rate: Chances are your card doesn't have just one rate, most have one interest rate for purchases, another rate for cash advances and yet another for balance transfers.
You should think about how you plan to use the card and pick a card that meets your needs.
It may be tempting to get a card with a larger available balance and a higher rate, but its probably better to prioritize for a lower rate.
Grace Period and Introductory Rate: Most cards will have a 30 day grace period for new purchases, but not always.
If you are using the credit card to improve your credit and you intend to pay off your balance each month this is very important.
Likewise, if you are moving high interest balances to this card and you intend to pay it off within the introductory rate, if there is one, you'll want to get a card with a low starting rate.
Remember, when you apply this adds an inquiry to your credit report, too many inquires is considered bad and should be avoided.
So what are some things to look out for? Fees: Different cards have different fees.
Some things you want to watch out for on your credit card are over limit fees and late payments.
These typically vary from $15 to $35, of course its best to stay under your limit and pay on time, but you should plan for the worst case and get a card with low fees.
Interest Rate: Chances are your card doesn't have just one rate, most have one interest rate for purchases, another rate for cash advances and yet another for balance transfers.
You should think about how you plan to use the card and pick a card that meets your needs.
It may be tempting to get a card with a larger available balance and a higher rate, but its probably better to prioritize for a lower rate.
Grace Period and Introductory Rate: Most cards will have a 30 day grace period for new purchases, but not always.
If you are using the credit card to improve your credit and you intend to pay off your balance each month this is very important.
Likewise, if you are moving high interest balances to this card and you intend to pay it off within the introductory rate, if there is one, you'll want to get a card with a low starting rate.
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