Scenarios to Observe When You are Opting for a Credit Card
There are a few emergencies which cost you the money you don’t have the money in your savings account then you would consider cash advance with credit cards are the best source of finance that could temporarily bail you from that situation. These are useful in day-to-day purchases and to build your business score, but before enjoying the benefits of credit cards here are certain things to consider when you opt for a credit card:
- Know interest rates: This is the first step to consider research online and compare best low interest rate on credit card that is available in the market. Having long term due on credit cards will certainly lead you into debt, so have control on them by choosing flexible interest rates.
- Avoid taking too many offers: Avoid having too many credit cards to get rid of debt; although they provide some beneficial offers, they even charge extra fees which may result in unmanageable debts.
- Credit limit: Do not take the card that has low credit limit, taking such cards is a waste of your time because you could again depend on other alternatives to meet your requirements if your credit limit is too low. If you have maxed out your credit limit you are supposed to pay extra fees to the lender company so avoid doing that.
- Annual fees: Check for Annual Percentage Rate (APR) this means you need to pay the annual rate that is calculated from your outstanding balance. Choose the lower APR by comparing different deals. Before signing make sure you go through all their conditions because there are a few companies that offer no annual fees but charge much on late fees. Also choose the company that includes fewer fees for using services like- transactions, cash advance, increase on credit limit etc.
- Reward points: Many card issuers offer certain rewards programs to entice customers to use the card. Smart use of credit cards can help you to manage your money and enjoy rewards as well, choose the reward type that best suits to your use.
Before taking this credit card ask question for yourself- do you really need this card, can you able to pay at the end of each month? Make sure you will not get penalized with late fees. In the case when emergencies come on your way and you are short on money then go for a payday loan, as they are short term loans and can handle your emergency situation by providing cash advances for a short period of time.
My Name is Michelle. I am a tech writer from UK. I am into finance. Catch me @financeport