|
|
Comparing credit cards |
|
|
Like any merchandise, you need to compare credit cards too
before you actually decide on which one to go for. The selection
of a credit card should not be based just on what is good, since
there is nothing like a good credit card. Neither should it be
based on the recommendations from a friend. The credit card that
fulfils your needs is the one which is good for you. Something
which fulfils someone else's need would not necessarily be good
for you since everyone has their own needs. Moreover, do not get
bowled over by all the offers being run by a particular credit
card. A lot of them are just selling tactics and might not meet
your requirements (and you can't keep changing credit cards each
fortnight).
So the first step is to evaluate why you need a credit card.
List down all your requirements and classify them as primary,
secondary and tertiary needs. Next, search for the credit cards
that fulfill most of your primary needs. Compile this
information in the form of a list or a document. Now check these
credit cards for what secondary needs they fulfill additionally.
By this time you should have short-listed 2-3 of credit cards
(or maybe just one). Finally use your tertiary requirements to
solve the |
|
|
|
tie-breaker.
The following are the things that you should consider when
comparing credit cards:
1. The APR: There is a short term as well as a long term APR.
Short term APR is a marketing and sales tactic and is used to
lure new customers into signing-up for the credit card. This APR
is offered for a short term just after you sign-up for a credit
card. So you should really be looking at the long term APR.
2. Additional benefits: These could be in terms of discounts at
a particular store where you shop a lot or discounted car
rentals or air fares etc. Again, based on your requirements
these may or may not be of your interest
3. Annual fees: Of course, this is your outgo on credit card
services and whether you use your credit card once in a year or
1000 times, you will always have to pay this fee. So it is a
very important factor indeed.
4. Credit limit: For heavy spenders, this is a very important
feature. Again, check your requirements before basing your
selection on this feature.
5. Rewards program: Some credit cards offer very attractive
rewards program. These are the points you earn for spending on
your credit card. Once you have enough points you can barter
them |
|
Untitled Document
Store cards can be very convenient, offering discounts and rewards. Are they a good bet in the long run?
Its so easy to forget to pay your monthly statement. This article explains what to do if you do!
At last the Competition Commission takes steps to cut excessive charges on credit cards. This article explains the new rules and names the worst offenders.
|
| |
