A Guide to Choosing Your Credit Card

A Guide to Choosing Your Credit Card
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Credit cards, when used right, are powerful financial tools you can use to boost your financial situation. It is especially helpful during emergencies and even for some investments. As long as you know how to responsibly use the tool and you pay your bill in full each month, you shouldn’t have to worry about problems.

If you’re committed to responsible credit card use, below is a guide to finding the best kind of credit card for your needs:

1. Look for credit cards with the lowest annual interest rate

When shopping for a credit card, offers of cash back, travel and other types of rewards are very tempting. If you’re fond of traveling, for example, you may prioritize travel rewards over interest rate which is a mistake in most cases. Remember that rewards are only a small fraction of what you charge to your credit card. Oftentimes, it’s not enough to cover for the interest rate you need to pay for every sterling pound you owe.

2. Assume that credit card rates can change at any time

When shopping for your credit card option, don’t be fixated with marketing terms like fixed or variable interest rates. Even if your provider promises a fixed annual rate, it’s not a guarantee that it will not indeed change over time. At the end of the day, providers have discretion to change rates depending on certain factors that they deem fair for their part and the consumers’ part.

3. Look for rewards cards if you plan to pay your bill in full

If you’re committed to paying your credit card in full each month, you might want to consider rewards cards. Look for cards that offer rewards based on the amount of money you spend. The more you spend, the more your rewards will be in the end. But again, just make sure you consider the annual interest rate before you focus on comparing the type of rewards system credit cards offer.

4. Take time to read the fine print

With competition getting stiffer among providers, introductory offers have become more appealing than ever. How exactly do you trim down your choices to the best credit card types available in the market today? It is by reading the fine print. Just because the credit card was advertised as the cheapest option doesn’t mean it really is the cheapest. You need to delve deeper and do your own research by taking your time to read the fine print. This is where you can learn about other important factors like hidden fees and charges.

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