Ten Tips to choose the Right Credit card

Credit card background stock image. Image of expiration - 1106139Have you decided to apply for a credit card? That’s nice. No doubt these cards are useful and convenient way to pay for services in daily life. It provides you cvv dump sites finance flexibility if used sensibly. One can use it for daily purchases, for business dealings, for managing debt problems and even for charity purposes. It can also be used abroad in foreign currencies through online network facilities.

But before applying for a credit card you must consider certain factors particularly if you are living in UK. As UK has one of the most competitive credit card market in the world so searching a right card that best meets your needs could be a time consuming process. So must keep in mind some special tips while choosing a best credit card. Info policy available with each credit card can also serve as a guide to compare between different cards.

Choosing a credit card depends upon individual status. It means whether he or she is a student, a businessman, a middle class man, a retired person or a widow. Different types suit different persons. Standard credit card is available for everyone over 18 years while premium credit card offers comparatively higher credit with lower interest rates and some extra benefits. So you can choose a credit card accordingly to your priorities.

Why are you applying for a credit card? This question matters a lot. Is it for managing your financial pressure or for business dealings. Do you want to enjoy special offers and incentives available with it or you want to use it for emergency situations. Whether you want to reduce interest payment on other existing credit card through balance transfer or want to donate for charity programs. Ask these questions to yourself before applying for a card. If you are able to clear the bill in full each month then annual fee and length of interest free period are more important factors than interest rate. But if you want some cash advances to manage financial burden then you must consider fees for cash advances and related interest rate (higher for cash advances).

You must have a complete detail of interest rates alongwith additional information about length of interest free period, interest calculation method, introductory low rates offer and APR. APR is annual percentage rate which expresses the cost of using credit card. Interest rates can also be increased or reduced over time. Monthly statement shows the current interest rate for respective card. In case of an increase in interest rate advance warning is given while in case of decrease in interest rate customer is informed within thirty days.

Rewards and incentives can also be another attraction to apply for a credit card. It includes cash backs, voucher schemes, price promise deal, travel insurance and purchase protection insurance etc. In cash back offer minimum percentage of cash is given back to you on spending certain amount. In voucher schemes vouchers or certain number of points are given to you which can be redeemed for future rewards. Price promise cover ensures refund in case of difference in prices if you bought an item on higher price and but later you found it on cheaper rate elsewhere. Through travel insurance you will find assistance in case of flight delay, lost of luggage and personal injury during travelling. While purchase protection insurance covers purchases in case of damage or loss for certain time period.

Payment structure also matters a lot when taking final decision in this regard. You must be fully aware of specified ways to pay off balance on credit card account. Different ways of payment include cash payment, using cheques or debit cards, direct debit option, telephone or internet banking etc. Most of the companies set up monthly minimum repayment percentage on your total balance that you are required to pay. This percentage can be a fixed amount or 2% to 4% of total balance. Knowing payment structure is very important as it is not a free money and you have to repay it through specified procedure to avoid any complexity. You may be thinking that getting an unsecured credit account with a dubious credit history is as easy as opening up one of the countless pre-approved card offers you receive in the mail each day. If you have read the fine print on one of these offers, you know that pre-approval is contingent upon an acceptable credit investigation. In other words, these offers are usually only useful to individuals with good credit scores who already have credit cards.

With a bad or nonexistent credit history, you will have to look harder for an acceptable credit card offer. There are some card programs designed especially for people like you, but they come with a high price tag. Once you have defaulted on a loan or other credit program, you become a bad risk to a credit company. In order to offset the risk, the company will charge high fees for giving you a second chance at managing your credit.

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