How to Compare Credit Cards
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There are several factors that you can consider in comparing credit cards…
Step 1
Take note of the card itself. Is it a secured credit card, regular or premium? A secured credit card is a credit card that is perfect for people who have a bad record or people who are still creating a credit history; this credit card needs a security while regular credit cards do not. Premium credit cards have higher credit limits than regular cards.
Step 2
How do banks calculate and compute your outstanding balance and interest rate. Banks have different ways of computing them. It’s best that you inquire how they go about in their calculations so that you will not be misled into thinking that you got the better end of the bargain. On the topic of interest rates, how much time will you be given before they will start adding interest and finance charges? Do they give you a longer grace period? For people who pay their credit bills on time, the issues of grace periods and interest rates will not be much of problem or a big consideration.
Step 3
What kind of fees does the bank require you to pay? There are many types of fees of different transactions for example; they will charge you with a foreign transaction fee. Or if you want to have a balance transfer, you will have to pay for that too. Banks charge different annual fees and late payment fees depending on what kind of credit card you have. You should take note that annual fees and late payment fees vary from bank to bank.
Step 4
How much credit limit does the particular credit card have? For secured credit cards, your credit limit may be as much or lower than the security you offer. Platinum cards will have higher credit limits than regular credit cards. Some banks already have predetermined tables on how much you credit limit should be. They will key in several factors such as your income and your credit history, they will then decide how much credit limit they will grant you.
Step 5
What features does the credit card have? What offers and reward programs does the credit card have? Will they give you rebates? Will they grant you travel discounts, flyer miles and the like? Do they have money back programs? If they do, what stores and services is part of that program? Check their requirements, you might not be qualified to join in the program because you might have a bad credit standing or your credit card is still new. Does the credit card have a cash advance feature? Instead of swiping the credit card for purchases, this feature will allow you to get cold cash by using your credit card.
Step 6
Is the bank accessible for payment? This refers to the proximity of the bank to your house or work place. Aside from that, what kind of procedure does the bank require you to follow? Do they require you to pay your statement personally? Should you always have to pay in cash or will checks do?
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