A credit cards reward can truly be incredibly valuable, as you are going to be using your credit cards anyway, so if you have rewards placed on top of that just out of nowhere, then that is just extra benefits that you are receiving, which obviously no one is going to complain about.
More About Credit Cards Reward Options
For the most part, you actually will have at least a couple of different options to choose from when it comes to the credit cards reward selection, and so you can pick and choose from the different options until you find one that would work best for you.
Typically a credit cards reward will be something such as a trip somewhere in the world, or refunded money onto one of your credit cards, for instance, but there are also many other choices that you should be able to pick from as well.
If you share your credit card with someone else, which you should never do to begin with but if you do, then you are obviously going to want to make sure that they are involved in this process as well, so that together the two of you can decide on the reward that would make you the happiest in the end.
Just make sure that you try to keep the amount of credit cards that you have down to the most minimum that you actually require, so that you do not end up having more than you need and thus spending much more money than you should, because this can result in getting you into a lot of trouble if you are not careful.
In fact, credit cards are known as being the most common reason being people getting into debt, and this is why you want to make sure that you do not have any to begin with if you do not need them, and if you do, then try to stick with just one or two, rather than having a number of different credit cards. As well you want to make sure that you always leave all of your credit cards at home whenever you go out anywhere.
Intro APR vs. Fixed APR
First of all, don't take an APR at face value. Sure, you can apply for that 4.99% credit card offer, throwing the 7.99% offer into the shredder, but what if that 4.99% rate is just a teaser? What if it jumps up to 14.99% after a few months? That 7.99% fixed rate sure would have been better.
Before you apply for any credit card, make sure you know the details of the APR. Is it fixed? Is it an intro or "teaser" rate? If it is, what's it going to jump to when the introductory period is over (and how long with that be)?
A Nickel Here, A Dollar There
Let's compare credit cards A and B in this scenario. Card A has an APR of 7.25% and it's a fixed rate. Card B is 9.9% and it's also fixed. Which card do you choose? If you picked card A, slap yourself on the hand.
Sure, card A might have a lower interest rate but what if the annual fee is $59 and there's a minimum monthly finance charge of $5? On the other hand, card B has no annual fee and no minimum monthly charge. Card B would be the better choice.
A low APR is great, but not if it means high fees. When considering the cost of a credit card you need to consider ALL of the costs, not just the APR. Is there an annual fee? If so, how much is it? Are there minimum monthly finance charges?
What About Grace?
Always compare the grace periods when you try to compare credit cards. A credit card that offers a grace period of 25 days is always better than one with no grace period at all. Credit cards that don't offer grace periods begin charging interest from the day of your purchase. That money can add up over the years and it's money out the window.
Remember, on the surface two credit cards can seem similar or one can seem way better than the other. It takes digging a little deeper to really see which credit card is better for you. The next time you compare credit cards make sure you take all the above factors into consideration before making your choice.
Both Roland Parris Jefferson Iii & Max Anderson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Roland Parris Jefferson Iii has sinced written about articles on various topics from Credit Cards, Cosmetic Surgery and Home Improvement. Roland Parris Jefferson III is an online researcher based out of Los Angeles, California. Need more details and expert advice on Credit Cards? Then please visit our. Roland Parris Jefferson Iii's top article generates over 135000 views. to your Favourites.
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