owadays many credit card print and details that accompany
companies offer perks to any credit card offer.
lure new customers ranging
from introductory offers with Annual Fee
zero percent interest for
transferred balances, Reward An annual fee is a membership or
Programs offering airline mileage participation fee that is charged
and cash back, and discount for having a card. An annual fee
programs with select merchants. can range from $25 to $50.
While these offers may be very
enticing, there are five key Closure Fee
factors, none of which include
perks, that you should consider Some companies also charge a
when choosing a credit card. closure fee when an account is
closed. This fee also falls
FEES within the $25 to $50 range.
One of the first factors to Over-the-Limit Fee
consider when selecting a credit
card is the number of fees An over the limit fee is assessed
associated with using the card when the sum of your purchases
and the totality of all of them and fees exceed the amount of
if incurred. Companies can charge credit you have available for new
a variety of fees with the most charges. Generally speaking, this
common being annual, closure, fee is around $25.
over-the-limit and late fees.
Because, not all companies charge Late Fee
the same fees and the level of
the fees can also differ, it is Late fees are charged when
important to read all of the fine payments are past due. Some
companies assess late fees as for purchases, cash advances,
early as one day after the balance transfers, fees and
payment due date. Late payments finance charges. Credit limits
can also trigger an increase in can start as low as $200 for
your annual percentage rate. department store credit cards and
go into the thousands for major
ANNUAL PERCENTAGE RATE credit cards (Visa and
MasterCard) depending on your
The annual percentage rate (APR) credit rating and income.
is by far one of the most
important, if not the most SECURED VERSES UNSECURED CARDS
important factor to consider when
selecting a credit card. The APR, Another factor to consider when
which is stated as a yearly rate, selecting a credit card is
is the interest rate applied to whether the card is secured or
outstanding balances. Low rates unsecured. Users of secured
are preferable since this means credit cards pay a deposit to
you will be paying less to use a obtain credit. These offers often
credit card. One single credit appeal to two classes of
card can apply a different APR individuals, those who are very
for balance transfers, cash young and are having a difficult
advances and purchases. time establishing credit and
those who have blemishes on their
CREDIT LIMIT credit reports that prevent them
from obtaining unsecured credit.
You should also consider the The credit limit for secured
level of credit that is being credit cards is usually
offered when selecting a credit determined by the amount of your
card. A credit limit is the deposit.
amount of money that is available
Unsecured credit cards are by far PERKS AND REWARDS
the most widely held cards and
tend to have higher credit While not one of the five key
limits. factors, I still felt it
necessary to write a blurb on
GRACE PERIOD perks. Many credit card companies
offer perks as an incentive to
The final factor to consider, the lure new customers and reward
grace period, is the length of loyal ones. Perks can include a
time you have to pay your credit Rewards Program that awards you
card balance in full without with airline mileage and cash
accruing interest charges. The back on your purchases. Some
ideal card will have a grace cards also offer discounts at
period of 25 days or longer. If select merchants and credit card
you carry a balance from month to registration, which protects you
month you will pay interest if your card is lost or stolen.
regardless of how many days are Unless you are a frequent user of
in a grace period with only new credit, perks should be the last
purchases being exempt for 25 item you consider when selecting
days. The grace period is usually a credit card because the biggest
not applicable to cash advances payoffs tend to go to the biggest
and balance transfers. spenders.
About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com
