While there are physically attractive cards on the market, choosing the hot pick option or the card with a picture of dolphins is the last criteria that should be used to make such an important financial decision. The financial attractiveness including the interest and charges are some of the points to consider.
Interest Free Card Cards
Shoppers should compare the rates of all the cards on offer to see which has the lowest. Many cards offer 0% introductory rates but it is important to check when the introductory period ends.
Introductory Period
As stated earlier, it is nice to have a interest free introductory period so look for the card with the longest time. A typical introductory period will last for 12 months but shopping around could uncover longer and more attractive periods.
At the end of the period rates could jump to as much as 29% and if there is a balance on the card, this monthly repayment amount could double as a result.
Best Annual Fee Credit Card
Finding a credit card with no annual fee will save money in the long run. The annual charges can add hundreds to outstanding balances every year. Considering that not all cards carry a fee then there is no reason to settle for this type of arrangement.
Credit Card Bonuses
Depending on the card and the provider, there may be bonuses that offer savings to the card holder. As an example some benefits could include cash back on purchases or the opportunity to earn points to spend at other retailers and suppliers.
Reward miles are points that can be used at the following organisations:
- Airlines
- Sports shops
- Telecommunication companies
- Racing venue etc
Credit Cards with a Focus on Social Responsibility
As part of the marketing strategy, many credit card merchants offer to pay a certain amount to charities for every dollar spent by the consumer. This could be attractive to certain people and can be part of the decision making process.
Additional Credit Card Fees
Take a careful look at the fees charged for things like late payments, cash advances or going over the card limit. If it is not monitored carefully, these fees can add up rather quickly
The points to consider when choosing a credit card are not exhaustive. A definitive list will depend on who is doing the shopping. Whichever card is chosen, shoppers should ensure that it is one the suits the present and future financial needs.
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Readers may also enjoy reading The Dangers of Credit Cards and Credit Card Basics.
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