Credit Card » Credit Card Guide

Credit Card Guide

Nowadays, the credit card is not only replacing the use of currency but is also becoming a status symbol. People try to know or peep into the type of credit card you are having because there are credit cards with a much higher limit than one can think of. Everyone wants to be looked upon as a person with status. Credit card is one of the signs of status in this society. There are several types of credit cards in the market around us and every credit card service provider tries to lure the maximum number of clients. In this age of stiff competition no company would like to loose even a single client. In this sort of market every credit card service provider takes the help of all the marketing gimmicks that is possible. New marketing strategies are being devised and implemented to get more customers. In such a market scenario the applicant of any credit card should be more than careful, while applying and availing the services. Some of the key issues to be taken into consideration while applying for any credit card are as follows:

Most of the credit cards service providers target the new and financially unskilled clients. These clients get easily fooled by words like discount and free. It is the responsibility of the applicant to be aware of and understand the Terms and Conditions of availing the facilities of the credit card. This is not about fooling people but taking advantage of their ignorance of financial transactions and dealings. If you are new to the services offered through the credit cards do not think that you are cursed or handicapped. You just need to upgrade and update yourself with the knowledge that is required to take wise decisions in this matter. Reading books about credit cards and conducting research on the net for credit cards can help you a lot when it comes to deciding which credit card to purchase and which not to choose. You should learn to differentiate between the credit card that is good for you and the one that is even better. You should also keep yourself updated with the latest information in the credit card market.

One should study about the need of the credit card. One should also chalk out a plan as to what to buy and what not to buy with the help of the credit card. Before buying the credit card one should keep into consideration the future financial goals and financial needs. This will make you clear about the utility of the credit card. Sometimes, the schemes include products and services that you hardly need. If you buy the credit card for this sort of services which are of no use to you, be sure that you have wasted money.

Comparison is one of the best ways of deciding which credit card to buy. The different brands of credit cards have different rates of interest. The upper limit of spending is also varied. In some of the credit cards the user can get bonus points and avail discounts on further purchase. One needs to take into account all these factors before deciding which credit card to buy. The network of the credit card where the credit card is honored plays an important role in your decision. If the credit card is not honored in your vicinity there is no use of buying it. If you are constantly traveling, make sure that the credit card is honored at the places that you visit frequently.

If you think that you can clear the bill every month then there is no need of a credit card that carries an annual payment. If you buy a credit card with annual payment in spite of knowing that you can clear the payment every month then you are undergoing a financial loss. You should go for the credit card with lowest rates of interest when you know that you are going to carry a balance for a long time.

The advance fee that the credit card service providers charge also varies from company to company. Usually, the customers prefer the company which has the lower cash advance fee.

Some of the credit card service providers offers bonus and rewards for the transactions carried out through the credit card. If you are clearing the debt regularly your credit record turns out to be on the positive side. This can increase your upper limit of borrowing from the market.

You have to take into consideration all the above mentioned factors before availing the credit card.