| Wish to apply for a credit card, but you do not know | | | | fees -- annual fee for having the card, opening the |
| which one you should opt for? There are some tips | | | | account fee, cash advance fee, balance-transfer fee |
| which you can follow while selecting a credit card. | | | | and late-payment fee. Fees are also charged if you go |
| Check APRs: The annual percentage rates or APRs | | | | over the credit limit, and if your check for paying the bill |
| on purchases, cash advance and balance transfer | | | | is bounced. Choose the card which has minimum fees. |
| varies from card to card. Even a single credit card | | | | Enquire about methods to calculate the balance: Card |
| may have different APRs for purchases, for cash | | | | providers use various methods to calculate the |
| advances and for balance transfers. So compare the | | | | outstanding balance. Some credit card companies |
| APRs of cards and where there is low rate and you | | | | calculate over one billing cycle or two, using the |
| think you will be benefited by that you should go for | | | | adjusted balance, the average daily balance or the |
| that card. Some credit card companies increase the | | | | previous balance, and including or excluding new |
| APR if you are late in making payments. | | | | purchases in the balance. The method can make a big |
| Compare Grace period or free period: Find out and | | | | difference in the finance charge you will pay. So go for |
| check the number of days you get to pay your bill in | | | | the card which method of calculating balance is |
| full without a finance charge. Some cards do not give | | | | beneficial to you. |
| a grace period for cash advances and balance | | | | Check the acceptance of the card: Choose a card |
| transfers. They charge from the very first transaction. | | | | that will be accepted everywhere. There are hundreds |
| Various cards have different grace periods. You | | | | of financial companies providing credit cards. The |
| should go for the card which provides more time to | | | | prominent among them are American Express Co., |
| pay back the amount. | | | | Chase Bank, HSBC Bank, Discover Financial Services, |
| See the credit limit: Different cards offer different | | | | and Citibank Bank of America. Also, opt for a card |
| credit limit -- the maximum total amount for purchases, | | | | with which you will get security from credit card theft |
| balance transfers and cash advances. This you can | | | | and frauds. |
| decide as per your need. If you want more credit then | | | | Choose a card best suited to your needs: There are a |
| go for card which has more credit limit. Some credit | | | | variety of credit cards you can get from card |
| cards facilitate users to go over the credit limit, but at | | | | companies. Besides the standard credit cards, there |
| the cost of a fee. | | | | are student credit cards, business credit cards, gas |
| Look for benefits: Credit cards offer various benefits | | | | cards, airlines mile card, entertainment cards, store |
| to the card users. Some cards offer cash back on | | | | cards. Decide for what purpose you want to have a |
| purchases, discounts on products if bought from some | | | | credit card and then apply as per the need. |
| of their partnered companies, additional warranty | | | | Do little research: Before applying for the credit card |
| coverage for the products you purchase, rebates on | | | | browse the Internet. See the features and other |
| travel, accident insurance, car rental insurance, | | | | conditions at the cards providers' websites. You can |
| insurance to cover the payments on your credit card | | | | also find the information on cards in personal finance |
| balance if you become disabled or die. Choose the | | | | magazines and in newspapers. The Federal Reserve |
| card that provides more benefits. | | | | System also provides information on credit cards. |
| Know about various fees: Compare various fees | | | | They have a database of the credit card providers. |
| charged to the user of the card. There are various | | | | |