What to consider when choosing a credit card
1. APR (Annual Percentage Rate)
This is the interest rate paid on any outstanding balance.
2. Special Introductory Rates
You may be offered a low or 0% interest rate for a limited time (up to 6 months) when you sign up for a new card.
3. Balance Transfer Rate
Card issuers can offer a lower interest rate if the balance of another credit card to theirs.
4. Interest Free period
Remember to check the interest payments, when it starts. Will you pay interest from the date of purchase? Or will a number of days interest free before I pay? There is usually no interest free period for cash withdrawals.
5. Cash back and Rewards
Some cards gift you points on every purchased ,spent on the credit card. Make sure these are right for you. For example, & ‘s no use collecting airmiles if you never fly.
6. The minimum payment
Remember to check what the minimum monthly payment will be. If you borrow £ 1000 on credit card minimum monthly payment will probably be in the region of £ 25. But if you only pay this amount each month will have plenty of time to pay the balance and the total cost of a lot when you include interest payments.
7. The annual fees
This is the fee that the issuer will charge every year to use your credit card. Check for the credit cards annual fee, while choosing what is best for you.
8. Delinquencies
There will be a surcharge and interest due, if payment is delayed. This position may be even more than the amount you must be careful to check what the charge is, and to ensure that all payments are made on time. A good way is to create a direct debit from your checking account.
9. The upper limit
You may also be charged a fee if you exceed your credit limit.
