Matching Credit Cards To Your Lifestyle
by: Neil Bartlett
Many credit card users are being charged more than 12% -18% interest on their outstanding balances. With crazy rates like that, it may well be that your credit cards are a bad investment.
At this stage you are left with three options, first, you could get rid of your credit cards for good, a nice thought but easier said than done. The second option would be that you could just put up with your current credit card and continue paying through the nose. Or you can shop around and transfer your credit card balance over to a credit card that won’t bleed you dry with their outrageous charges.
If the latter is an interesting option, you may want to see www.coolcreditcarddirectory.com for a complete listing of credit cards and their individual details that can be compared and chosen all in the one spot.
Don’t Get Caught in the Hidden Fee Trap
The problem with a lot of credit card companies is that they make it very easy to get a credit card, once you have signed up they begin to hit you with a host of hidden charges and fees. Some credit companies will even give preference to customers who are unlikely to pay off their monthly balances.
The best way to find a credit card that will suit you and your budget is to sit down with each type of card that you are considering and figure out how much will each card actually cost you. Credit card offers seem to pop up in the mail everywhere. Seemingly these cards offer better and better deals all the time. Proceed with caution with these, as they are often the ones that slap on all sorts of hidden fees or yo-yo their interest rates.
Rates, Don’t Get Caught Out
As far as interest rates go, don’t get suckered into a tempting introductory offer on a credit card, make sure you are aware of what the interest rates will be after the honeymoon period is over. Another thing that you may want to look into is whether the interest rate mentioned on the card is actually the amount that you will have to pay on the balance that you are transferring from your previous credit card.
Often, credit card companies forget to mention that there is one rate for purchases and one for your transferred balance. There are credit cards available that will offer you an introductory APR on your purchases and transfers for 12 months or more, meaning that you will be given about 12 months to pay off your existing balance at a heavily reduced rate. Many of these cards are offering no annual fees and cash back bonuses on purchases.
Rates will often increase if you are late on a payment. The problem with this is you may permanently be kept at this high rate. If this is the case, you may want to consider changing credit cards all together.
Often credit card companies will offer the choice of a fixed or variable rate, fixed rates are slightly higher and really don’t mean much. All that a fixed rate means is that the credit card company is obliged to notify you a couple of weeks before they raise your interest rate. Variable interest rates can change without notice, although most cards are tied to a national interest rate so their fees won’t rise too high.
Get A Good Grace Period
Make sure that your credit cards offer a grace period, which means a fair amount of time before interest is accrued on your purchases. Some credit card companies begin to charge you interest from the moment that you make a purchase. Even if you do pay off your balance each month, you will still be paying interest on your purchases.
Other cards offer grace periods of 20 days from the transaction, meaning that if you wait until your credit card bill is due then you could be paying interest on your purchases without even realizing it.
Fees, and Credit Card Tricks
Card issuers are getting more and more sneaky with their fees. That is why it is so important to read the fee disclosure document, These disclosures are included with the credit card offer.
If you have a good credit rating and are in the habit of paying your bill in full monthly, you should make sure that you won’t be paying an annual fee on your credit card. There are lots of good credit cards available that don’t charge this fee. Another thing to watch out for are closure fees, some of these fees can be quite high. Avoid a card that charges this fee, it is ridiculous to be charged a fee to close your account.
The best way to make sure that you are getting a good deal on your credit card is to understand how the credit card company is calculating your interest and charges and keep an eye on your statements. That way you wont be caught off guard.
About The Author:
Neil Bartlett
CoolCreditCardDirectory.com makes it easy to find the right credit card to fit your needs quickly & easily. Find all the top credit cards and free credit card resources you need to get your credit card fast. http://www.coolcreditcarddirectory.com
August 2006
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