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If you are thinking of applying for a credit card there are some issues that you should acquaint yourself with upfront. One of the things you should definitely be aware of is that there is no uniform code for exactly what fees and interest rates a company can charge, there are upper limits, but within those limits lies great disparity. Another important factor to consider is how you will be using the card. It can make a difference whether it is business or personal, for example.
Some of the other issues to take into consideration when applying for a credit card are the following: The interest rate being charged and how long that rate is guaranteed. Don't fall for the so called zero interest rates, read the fine print and know exactly how it works. If you are one of those rare people who actually pay your card off every month then the rate isn't a huge factor, for most people it is. If you have difficulty paying your card off occasionally then you definitely want to be sure that you have the lowest rate possible. This can make the difference between manageable debt and a credit card balance that grows out of control. This is of particular importance if you use the credit card for larger purchases that may take you some time to pay off. Another thing to look into is whether or not the company you are considering has a points or rewards program. I am sure that you have heard by now of cards that reward you for using them with points that can be redeemed for products and services. One of the most popular of course is the one that gives you air fare, also sometimes called a "Miles Card". Other credit card companies may even offer cash back incentives but the most common programs just give discounts or gift cards at retailers that they have built relationships with. Annual fees can sometimes sneak up and bit you if you aren't careful. This is especially true of credit cards that target people with lower credit scores where they may issue a card with a $300 limit but the initiation fee and annual fees ad up to $250! Sometimes these annual fees can be quite high so as I said before it pays to read the fine print before signing and accepting the credit card. Many credit card companies now offer membership clubs that give you additional benefits for having their card such as roadside assistance, travel, and discounts on hotel reservations. If you are the type of person who travels a lot one of these cards would be better for you so definitely take the time to check them out. . |
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