Know the Credit Card Well Before Applying for One
Owning credit cards are quite handy. You need not bring cash but still able to buy anything you want since almost all establishments, including those selling online, accept all types of credit cards. In fact, even if you do not have money yet, you can already make any purchase that may be heavily needed. It therefore provides safety and an answer to emergency needs.
However, people who are making use of credit cards should have discipline and be responsible enough not to spend beyond their means or end up being burdened with tons of debt. Those who are uncontrollable can even end up facing bankruptcy. Always keep in mind that credit card interests can be costly once compounded. If you have several credit cards and you have no control with your spending, chances are you will not be able to pay them all properly and credit card interest can hurt you badly.
There are actually some ways to make credit card maintenance not as costly as it is. With the huge number of credit cards being offered by different banks and other financial institutions, you can afford to choose the best credit card depending on your style of spending.
First thing that can hurt you when acquiring a credit card is the annual fee. While many of these card companies will require cardholders to pay an annual fee, there are also plenty of credit cards out there which offer zero annual fee. This alone is already a big savings. Another thing that makes cash better than credit cards are the interest rates. The Annual Percentage Rate, better known as the APR,is what the card companies charge to holders to enable them to profit. These credit cards differ in the interest rates they charge. Some are a lot bigger than the others. Paying cash for purchases becomes a lot better than these cards because with cash, there is no need to pay extra for interests. The good news is, there are many promotional activities and other attractive come-ins that these card companies think of and one of them pertains to the APR. Some offer 0% APR for the first three months. Others are offering it on the first 6 months and some even on the first year.
In applying for a credit card, it is very important to consider a lot of things. You should not let any agent or sweet talking banners online that offer free credit cards or zero percent credit card without really knowing what is between the fine lines. Never consider getting anything you do not really know about.Many credit cards will offer 0% interest but upon one late payment, you will instantly be charged a bigger interest for the whole amount. There are some cards that will offer smaller interest rates but has other hidden charges that you will realize only upon the receipt of the bills. If you intend to get credit cards and has no capacity to paying full, you will have to pay the minimum fees plus the interest rate charges. Therefore, you need to make sure that the credit card you will get is the best there is in the market in terms of the most important details such as the APR and the annual fees. Get the cards with no annual fees and the smallest APR offered. You also would want to get a card that has the longest free APR which is usually for a year.
The most important thing about all this however is your discipline and diligence in paying for your monthly bills religiously without delay to make sure that you will not need to pay additional and unnecessary charges.
Escaping from Credit Card Interests
When applying for a credit card, you will surely find the acronym APR. If you will spell it out,APR is simply the Annual Percentage Rate. This is the interest rate charged by the credit card to cardholders per year. The percentage is computed against the whole amount you owe the company and pro-rated to a rate billed to you monthly.
The number of credit card issuers abound today. To out-do one another and impress more clients, each one tries to offer the best deals especially in terms of annual percentage rates. There are credit cards that gives 0% APR. This however does not mean that the card will not charge you interest rates on your purchases. What it actually means is that you will be offered no APR but only for a certain period. Some cards offer it for the first three months, others for the first six and still others for one year. After the said period, the standard rates of the credit card will apply. There is however a catch with these 0% APR offers. If you fail or delay paying for even a single billing, the whole amount you owe the card company will be charged with an even bigger interest rate or at least the standard rates. Additionally, all succeeding purchases will also be charged within interests. It is vital therefore that you be wary of all the details of the promotional offers in your choice of cards so as not to be shocked with sudden ballooning debt. When you apply for a credit card, your APR may be affected by your credit rating. Those with poor credit history may still be issued a card but the APR will be much higher. It is up to you if you are willing to take these interest rates or not. There is however a way to beat the high credit card interest rates being charged by banks and other financial institutions. Firstly, if you can afford it, pay the full amount reflected in your bill. Doing this will prevent you from being charged any APR. This however may be a difficult thing to do for many ordinary individuals. Another alternative may be a bit scheme but it can surely work to your advantage.
You can escape paying any APR if you will apply for one credit card with an offer of 0% APR offered for one year. After a year, the card issuer will begin charging you interests. What you do is stop using that card and apply for a new one that also offer similar promo on the APR, preferably for a year again. This gives you another year of free APR. With the huge number of credit cards in the market, you will not run out of choices. You can surrender the others that you have used already so that you need not have too many cards. You can do this on and on and you will not have to pay any credit card interests for as long as there are card issuers that will approve your applications.
What is even more important is the responsibility in paying off the bills on time and the discipline to charge to the card only the expenses that are necessary. This way, you will not be buried with debts.