In today’s world, issues of finances and money have significantly evolved due to the evolution of technology. How we do accounting is changing, financing models for business are changing, and banking is growing and for sure how we make payments is also changing; for the better in all these cases. Personally, I am not a fan of walking around with bundles of cash in my pocket for apparent reasons. This poses a security issue and in most cases, you walk around tense and uneasy. I am sure I am not the only one, and you too probably share my sentiments. One solution we have for this is a credit card. It allows us to make all manner of payments without having to carry cash around. Indeed the power of ‘plastic money’. However, credit cards are like power saws. They provide excellent ease in getting the job done but if mishandled can catastrophic consequences. In this case, it is your finances that will experience these terrible effects. To get more info, click mbna cash back credit card
. So what factors should you consider when choosing a credit card?
The first question to be asked is what you are going to use the card for. Do you intend to pay the card off monthly without fail? Are you anticipating carrying a balance from month to month? Are you planning to use it for everything you buy r just emergencies? All these are vital questions based on spending habits. If you will be paying the card off monthly religiously, then look for a credit card with no annual fee and has a more extended grace period. If you will be carrying balances, one with a low-interest rate and initial cost is best for you. If you use it for everything, then a generous credit limit and robust reward program are what you are seeking. For emergencies, just look for a card with low-interest rate and fees.
Consider the interest rate as well and be informed fully about it. Credit cards will carry an interest rate in the form of an annual percentage rate. This rate can either be fixed or variable when attached to another financial indicator such as the prime rate. When dealing with the fixed rate, be sure it will be constant from month to month but may change if you pay your card late, go over your limit or the service provider notifies you of a change. As for variables rate, as the name goes, it fluctuates from time to time.
Think also about the credit limit. This is basically the amount of money the credit card issuer has set for you to borrow. Discover more
about credit card. Your credit history is what dictates this, and it could be a considerable amount or equally, a small figure. It is not a good idea to regularly get close to maxing out your credit limit as it decimates your credit score. Your credit card issuer could respond by slashing your credit limit. So get some good info on your credit limit before you start swiping that credit card.
Finally, get to know what kind of incentives your credit card issuer offers. You will find that many companies will have reward programs to motivate their clients to use the card. If there are no extra charges relates to this, then it can be advantageous. Look for a reward program that is flexible in terms of offering cash, travel or other rewards that you use and that are easily earned and redeemed. Learn more from https://en.wikipedia.org/wiki/Credit_card.