Credits and Loans

5 Tips To Evaluate A Seemingly Lucrative Credit Card



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In an attempt to find the best credit card offers for your needs, you must compare s few offers that are currently available. You can’t miss out on the key points pertaining to your personal and business requirements.

Check out the following steps for evaluating a credit card offer:

  1. Identify the offer source

You should only consider the known sources while applying for credit cards. It will help you in avoiding scams and all unsolicited cards. You must pick cards based on your financial needs. There are a few online tools that can even help you evaluate the benefits of a card.

  1. Determine your type of card

Credit cards don’t come with uniform offers for all users. That’s why you need to identify the most appropriate card keeping with your needs in mind.

Consider few of the most usual types of credit cards that you come across:

  • Balance transfer: Balance transfer cards are good for borrowers that wish to pay off their current debt without bearing higher rates of interest.
  • Rewards: These cards are meant for individuals that wish to enjoy the real rewards by paying off their balances in full at the end of every month.
  • APR worth 0%: This is a great option for those that don’t have what it takes to pay off their card balances very soon.
  • Secured: These cards provide a cash deposit worth the same amount as that of your credit limit. It’s good when you carry limited credit.

3. Check out the rewards program

For a wide variety of purchases, the reward rates may vary with all reward cards. Some of you may choose to compare the individual offers on hotel and flight booking. A study in Canada shows that most people won’t spend enough time comparing credit cards or similar products. While some cards come with additional rewards for booking travel, others may provide for rewards on groceries. You must determine how to spend your money and identify cards that yield rewards for your specific buying needs. You must also be able to redeem all reward points easily and quickly. Don’t pick a card that yields travel rewards if you don’t travel very frequently.

  1. Understand all credit card fees

Credit cards are often associated with multiple fees. Following are the fees that are usually attached with credit cards:

  • Annual fee: This is the fee that the user needs to pay for using the card per year.
  • Overseas transaction fee: This is a transaction fee that you need to bear for overseas transactions. It’s worth up to 4% of overseas charges.
  • Late payment charges: Late payment fees are what you need to pay for not making payments within the due date. You’ll pay it in addition to your scheduled payments.
  • Cash advance fee: With a few credit cards, you may be able to draw cash from your nearest ATM. But for this type of cards, you’ll need to bear a higher APR besides your cash advance fee.

You may certainly avoid these fees by creating a cash reserve for emergencies besides being responsible towards using cards.

5. Consider all additional benefits and perks

Apart from credit assistance and reward points, there are a few other benefits associated with credit cards. You may enjoy things like travel and purchase protection with some cards. You could be reimbursed for items that are stolen or damaged. Likewise, you may avail lost baggage coverage and rental car insurance besides being covered for trip cancellation or delays.

You must compare the protection benefits and other features for a handful of cards before zeroing in on one. But for this, you may need to read the terms of usage very carefully before signing up.

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