Credit cards in the recent times have almost become a part of our lives. There are hordes of companies just awaiting a single nod from you to start processing your card. However, choosing a credit card is actually as difficult as choosing how to spend your money wisely as well. Here is a checklist that can help you choose the right credit card:
Checklist of Credit Card Features
· Annual Fee. Annual fees vary from one credit card to another starting at a nominal fee of as less as $35 per year to a few hundred dollars – mainly in case of cards offering complete concierge service, regular automatic upgrades, and other benefits.
· Annual Percentage Rate (APR). Knowing the APR is important in making the right choice for credit cards. Some credit cards are offered for as low as 0% interest, moving up to about 20% APR. In all, the average APR is currently around 13%.
· Credit limit. Always check out what credit limit is offered, i.e. the upper limit on what you can spend. This can help you make a choice.
· Late fees. In most cases, the late fees charged by credit card companies usually vary between $30-35 a month. However, some cards charge very high penalty charging you with higher late fees, or even as in some cases, increase late fees with more than one late payment.
· Grace Period. Check out if the credit card you are opting for has a grace period at an average of 15-25 days to pay bills. Avoid choosing credit cards which have no grace period and start charging interest from the day the statement is issued, making you pay heavily for interest, in case you choose to pay a week later.
· Rewards. Rewards form strong criteria in choosing a credit card. There are a few credit cards that offer such lucrative rewards program from airline miles to cash backs and rebates to a general point system that can be redeemed for free purchases. However, make sure to check the other fees and restrictions associated with the reward program, so that you are not caught unaware of any charges in the last minute.
Types of credit cards
Again, there are different types of credit cards to choose from as per your needs and preferences:
· Standard Credit Card
· Premium Credit Card
· Charge Cards
· Limited Purpose Cards
· Prepaid Credit Card
· Business Credit Card