How to Choose the Best Credit Card for you?

In this modern era, a credit card is one of the best methods to make payments for the goods and services. It is also known as plastic money in terms of “economics”. It is a way to carry cash in a safe mode, but it is proficient of exacting awful destruction if misused. Therefore, it is very important for the cardholder that he should pick the credit card according to his requirements and also follow the safety rules.

How to Choose the Best Credit Card for you?

how to choose credit card

Here, we’re going to share a few things which you should keep in mind while selecting the card for your job.

1. Expenditure practices

The first thing you should definitely ask yourself that what is your aim to use it? Are you the person who wants to use it every day? Or do you want to use it for emergency purpose? And do you want to use it every month for personal expenses?

Once you decide, now look at how you can pick the card:

  • If you’re going to use it every month for paying any fee, you must go with a card without an annual fee. So, you do not need to pay finance charges.
  • If you’re going to use it for shopping or personal expenses, go for the card with generous limit and rewards program.
  • If you want to use a credit card for emergencies only go with a no-frills card with a low-interest rate.
    The number of cards is available, but you have to think why you need it and what’s the aim?

2. Credit limit

It amounts that cardholder willing to borrow from the card issuers. Well, this only depends upon your past behaviour. For example, if you borrowed the money and unable to repay this break down your score even credit card issuers check your current balance that helps them to cut or increase the credit card limit.

3. Dues and consequences

There is a no motive of credit card issuers to earn form you. They just charge a fee according to your requirements such as transaction fee, asking to raise credit limit, cash advances and much more. Whereas consequences is a fine which you have to pay only if you fail to repay the credit amount or clear you paid amount late.

4. Credit Balance calculation method

It is a method of calculating the finance charges that you have to pay. The most common method for calculation is an Average daily balance where your daily balances are added together and divide with a number of days in the billing cycle. This winds up your finance fee. Please stay away from those cards which calculate by two billing cycle.

5. Inducements

It is a reward program that is given by the credit card issuers to the cardholders to encourage them to use their card more and more so they can earn points and get large credit limit and other existing offers and gifts. Always look for the card which gives you rewards which make your experience better.

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