One of the aspects of a consumer society such as is widespread in the West, is the huge number of gadgets that people are persuaded to purchase by advertisers and the debt that we are persuaded to get into in order to be able to pay for them.
One of the most crucial financial tools ever invented was the credit card because it made credit easy, which allowed people to get into debt easily and purchase more items with money that they did not have. The invention of the credit card was a stroke of brilliance for the financial and commercial world.
Most people comprehend the value of having a credit card and do not abuse the credit facilities offered by them. However, it can be very handy to be able to get your hands on a few thousand at a moment's notice, and it is a lot safer than carrying cash.
Most individuals think about applying for a credit card when they comprehend the convenience of having one. Applications for credit cards are mostly done soon after eighteen or twenty-one years of age, which is a testimony to the value we place on having a credit card.
Numerous people are lured into applying for a credit card by low APR (annual percentage rates) and air miles, not many cards charge a fee any longer.
If you are thinking of applying for a credit card, I hope that you will find some of the following suggestions useful. It is vital to gain a feel for the latest credit card offers and the best way of doing this is on the Internet.
Write the pros and cons of a dozen credit card offers onto a sheet of paper and put the different points under headings like: APR, Fees, Penalties, Free Days, etc., so that you can compare them easily.
Be certain that you are completely aware of the terms and conditions of using the credit card that most suits you. Above all, read about the penalties for late payment and think of whether you can realistically comply with them.
Verify the APR before applying for a credit card. Is it unusually high? What is the average for credit cards? How does your target card compare?
The APR does not matter in fact, if you intend paying your bill every month. Some of the companies charging high APR's permit longer free credit periods, so straight comparisons are not always easy. It sometimes seems that credit card companies look for methods to obfuscate the conditions of use of their cards, so be wary.
These periods of free credit are often known as 'periods of grace' and are very important depending on how you intend paying off your monthly debt. Look out for transaction charges as well and any other covert charges.
Consider getting at least two credit cards, one with a long period of grace so that your money continues to earn interest in the bank, and one with a short period of grace but a very low APR in case you need to borrow money in a crisis.
More Information:
If you are considering swapping or
applying for a credit card, check out the free info on our website about
Using Credit Cards sensibly.
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