Best Credit Card Type For Your Requirements
With so many credit card issuers now offering you the chance to become a member of their system, how can you tell which credit card issuer you should apply for, i.e. how do you know which credit card is best for your needs?
In answering this, even before you consider choosing a credit card issuer, you need to ask yourself the following questions:
- why do I even need a credit card?
- if I get a credit card, will I pay my outstanding balance in full each month?
As you will see, the answers, if honest, you supply to these questions will help you to decide which credit card is best for you.
Why do I even need a credit card?
There may be any number of reasons why you need to apply for a credit card – not least of which may well be the fact that you find you cannot do anything you want to do, such as make purchases on the Internet, without one!
Nevertheless, most people cite as reasons for apply for credit cards as:
- a need to borrow money quickly;
- to use the card to pay for their weekly shopping or petrol purchases;
- in order to make purchases on the Internet;
- to use when they go on holiday or overseas.
Will I pay my credit card bill off in full each month?
Approximately 90 percent of all credit cardholders in the UK do not pay off their credit balance each month, which might go some way to understanding how we, as a nation, have an outstanding credit card bill in excess of £200 billion! If this sounds familiar, then before you apply for a credit card you need to do some careful research on what:
- annual percentage rate (APR) is going be charged on your credit card account;
- whether or not you’ll be allowed to transfer your credit card balance to another credit card issuer, who may be offering you a lower APR, without incurring any penalty fees
If, on the other hand, you are one of the 10 percent who plans to pay off their credit card every month, then you are in a position to look around before you select a credit card issuer. Even so, you will still need to consider:
- what, if any, annual fees you’ll need to pay;
- whether or not you’ll be charged for making cash withdrawals – in particular, whether or not interest will start to accrue from the day you withdraw the money from the ATM or from your statement payment date;
- if the card provider has a loyalty programme in place (see Chapter 4.1 for further details about “Loyalty Programmes”)
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