When it comes to finding a new credit card, you might not have as much choices as people who already have good credit. But you should still do some comparison shopping to make certain you are getting the best deal available to you. Credit card terms and interest rates vary – and some of these variations can make a huge difference to your wallet. Always look for the card with the very best interest rate and terms.
Here’s what you should look for in credit cards:
1. Avoid high interest rates. Credit card companies disclose the interest rate in a number of ways, but you desire to look at the APR (APR). This is the amount of interest, transaction fees, along with other charges that you’ll pay each year, expressed as a percentage. fe-acc18.ru login It’s the best indicator of the specific interest you will pay.
2. Avoid low introductory rates. Some cards have a low “introductory rate” (also called a “teaser rate”). After a few months, the interest will skyrocket. Also, sometimes the advertised rate only applies to certain people, such as those earning a high income. The card issuer charges a higher rate to those that don’t qualify – which could mean an unpleasant surprise when your first bill arrives.
3. Understand interest calculations. Many banks today charge interest in line with the average daily balance. This is one way it works: Say you charge $1,500 on your own charge card and pay $1,200 on the deadline. When your next bill arrives, a bank using the average daily balance will charge interest on the $1,500 average daily balance from the prior month, not on the $300 you still owe.
4. Review the grace period. This can be a interest-free period of time between your purchase date and the bill deadline. It is usually available only to those who usually do not carry a balance. In the event that you pay your bill in full each month, be sure you have a grace period. Otherwise, you’ll pay interest from the date of your purchase. In the event that you carry a balance, a grace period is not important.
5. Avoid high annual fees. Some credit card companies charge you a set fee (as well as interest along with other charges) for using their card. Some do not. If you pay off your balance every month, you want a card without an annual fee. In the event that you carry a balance, a card with an annual fee but a minimal interest rate may be much better than a card with no annual fee but a higher interest rate.