CREDIT


Credit Card

Finding the best credit card for you

Credit cards have come a long way since they were first started, offering only a fixed set of features. The variety of credit cards available today is enormous, with varied fees, reward programs and interest rates. Which credit card is the best for you depends on your financial situation and purpose for which the card will be used. Consider these points for making a wise decision:

  • APR or Annual Percentage Rate - It refers to interest rate, which can be fixed or variable. You should know how it is determined and how often it is changed.
  • Credit limit - Credit limit means how much money you will be allowed to borrow. It will be determined by your credit rating. Crossing the credit limit can reflect badly on your credit score.
  • Annual Fee - Many cards are free from any annual fee, while others require you, the cardholder, to make a payment every year.
  • Other fees - Besides annual fee, some companies also charge you money when making a payment or transferring balance. Find a company that charges a reasonable or no fees at all.
  • Rewards - Reward programs offered by many credit card providers allow you to earn reward points for hotel stays, flights etc, which can be redeemed later on. This feature is generally provided without any extra fee.
  • Penalties - Credit card companies generally charge an amount in case of late payment or crossing the credit limit. So look for a card with maximum grace period.
  • Besides considering these factors, also keep in mind your preferences and lifestyle to find a credit card aptly matched to your needs.