In this fast and overcrowded world where often you get stuck in traffic jams or long ATM lines. Don’t get lured by these amazing pieces of convenient technology. One definitely needs a credit card. But don’t rush as choosing the wrong card can lead you to major financial mishaps, therefore you have to be sure about certain things before going for a credit card, as it will help you in financing your expenses in a much organized manner. Here are some very important tips one should keep in mind before going for a credit card.
- Do a thorough market research – Starting with the basics, market these days is flooded with banks ATM’s and credit cards so if you want to get the best deal surf through the market thoroughly and look for the best offer credit cards. Find out the advantages and disadvantages of the credit card and the bonuses and offers it is providing.
- Know your needs – After a thorough market research when you are fully aware about your credit cards plus and minus points now calculate your needs. This is a very important step towards getting a credit card for you. Don’t get tempted by big credit value credit cards as they lure you to spend more even if you don’t need to.
- Know your Card’s Interest Rate – Be sure that the card you are choosing doesn’t charge you high interest rates as it can lead to extra shedding of money from your pocket.
- Never Choose a card because of its cash back policy – People often randomly pick cards with great deals on cash back policy which in turn lead them to overspending just to match the targets. So keep in mind the tricking tactics of credit cards so that you don’t end up spending double your needs.
- Choose a card with Low Annual Percentage Rate – One should be aware of the APR on his credit card so that you don’t end up paying double interest on any costly item if purchased with the credit card.
- The Credit Card should be of low annual Fee – You should always keep in mind that credit cards should be kept for emergencies and expensive purchasing therefore you have to choose a credit card that has minimum annual fee.
- Never Buy a credit Card Because its free – People often get lured with schemes they are being offered by there banks and get a credit card saying it is free for an year or 2 years, actually it is just to make fool of the customers. Credit card is never free, you are always charged a certain transaction fee every time you swipe you’re shining plastic money. So beware and go for a credit card only if you need it.
- Check the credit limit offered – Always check the credit limit that is offered on your credit card and go for the one with the longest credit limit this will help you pay your credits conveniently on time without any pressure.
Credit card is a very complex yet confusing commodity. People who are financially strong should only go for it or only if you are sure enough that you can pay back what you are spending. We don’t want you to land in a mess of debt as it is a very tricky affair and many banks often try to fool the customers by not informing them fully of the benefits and penalties of the cards, which leads to unintended debts and extra money shedding. Therefore think twice and keep yourself fully informed about your credit card and make the most out of it.