Tag Archive 'competitive interest rates'

Jan27

Credit Card Shopping: What to Consider when Choosing a Credit Card

Choosing Credit Card

Choosing a credit card is a bit of an art. One credit card doesn’t fit all, and your spending habits, your wants and your needs all play a part when determining which type of credit card is right for you.

Your credit card can be an extremely useful financial tool, so it is up to you to decide which type of credit card will best fit your lifestyle, your financial needs and your budget.

What to Consider when Choosing a Credit Card:

  • Decide which type of spender you are – Are you the type of spender who pays your bill in full each month, or do you anticipate carrying a balance? Will you use your credit card for personal use, or is it primarily for business purposes? Will you use your card for daily expenditures, or will you only use it for emergency purposes? All of these questions are necessary, as there are a number of cards that cater to different spenders. For example, an individual who pays off his/her balance every month will likely need not worry about APRs, but instead focus on details such as annual fees and rewards programs.

  • Find the best APR – Do your research and find the cards with the most competitive interest rates. Decide whether a fixed or variable interest rate is best for you, and then determine whether the quoted interest rate is a promotional one, as this will likely change within a year’s time to a higher APR.

  • Consider whether you need a balance transfer option – Many individuals who find a new credit card with a more competitive interest rate often transfer their old balances onto their new card. Although this is generally a good idea, it is important to fully understand all of the terms and conditions that accompany the balance transfer offer. Some things to consider: the APR on balance transfers; the length of time the promotional rate will stay in effect for the balance transfer; and the balance transfer fees associated with the balance transfer.

  • Read the fine print – Commonly referred to as the credit card’s terms and conditions, the fine print on your card is chocked full of very important information about your account that you must fully understand. Don’t accept a credit card offer if you don’t fully understand the card’s terms and conditions, and ask questions if something doesn’t sound right.

Comments

No responses yet


Jul15

The Perks of Using your Credit Card to Make a Large Purchase

Credit Card Rewards

If your credit is great and you’ve earned a high credit limit and a low interest rate then you may consider using your credit card to make a large purchase. From a used car to a flat-screen television or backyard deck, your credit card may be your ideal source of credit for large purchases and home improvements.

Have you considered using your credit card to make home improvements; to take a family vacation; to purchase household appliances or furniture; or to purchase a computer? All of these types of purchases can be made using your low-interest credit card!

There are plenty of perks for using your credit card to make large purchases, including:

  • No loan application – If you are looking to make a large purchase on credit you will need to deal with the hassle of a loan application; either for a car loan, a personal loan or another credit card. However, if you have an existing credit card with a high credit limit and a low interest rate, you can make your purchase and avoid the frustration of filling out a loan application.

  • More competitive interest rates – Many personal loans, auto loans and retail credit cards charge shockingly high interest rates; whereas, your credit card will likely have a more competitive interest rate. Compare the interest rates for a personal loan, as well as your credit card, and you may be very surprised to see that your credit card may offer a much lower interest rate.

  • Convenience checks – There is no better way to make a large purchase than to simply write out a check. Many credit card companies send convenience checks to their outstanding customers, along with special offers and promotions. For example, it is not uncommon to receive a special convenience check promotion with a low, fixed interest rate until the loan is paid off.

  • Easy repayment terms – Your credit card will likely boast easy repayment terms which allow you to prepay without a penalty. Most credit cards have simple, straightforward terms and conditions, as well.

Comments

No responses yet


Get Equifax Credit Watch