Comparing Credit Card Offers

With the wide range of credit cards available in the market at present, it becomes confusing in choosing as to which card works best for you. All credit cards target a certain segment of consumers. For example student credit cards have offers which appeal greatly to the student population. You could choose your credit card based on parameters listed below.

• What is the APR (Annual percentage rate). This is the rate you would be paying on outstanding balance.
• What is the maximum credit you can draw?
• Check out the minimum repayment per month. But remember that a very low repayment won't help you much. If you borrow 500 $ and the minimum repayment is 25 $ ,it would take 20 months to pay off the balance and cost a lot in total when you include the interest payments
• Are they charging any annual fees? Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you.
• What is the late payment charge? There will be an extra charge, as well as the interest owed, if your payment is late. This charge may even be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time.
• What other benefits come with the credit card? Choose on this aspect carefully to suit your lifestyle. An auto rebate might be very appealing to an individual saving to purchase a new car, whereas airline miles would be the rebate of choice for the globetrotter looking to squeeze in one more trip this year. If these rebate programs are likely to give you a return that is truly valuable for you, then it is probably worth signing up.
• Also check when interest payments will begin. Will you pay interest from the day of the purchase? Or will you have a number of days interest free before you begin to pay?
• Beware of Special Introductory Rates. You may be offered a low rate of interest for a limited time (Up to 6 months) when you sign up for a new card. A higher rate of interest may be charged for cash withdrawals. Make sure what the interest rates would be after the introductory offer expires.