Here are some popular queries related to credit card:What should one look in a credit?
You should take into consideration three important factors before purchasing a credit card. These are
interest rate, annual fee, grace period. Legally all credit card companies are required to inform the customers about the three factors mentioned above. Apart from these, there are other features offered in credit cards like rebates, frequent flier miles and others. You need to decide whether you want to pay the higher annual fees for those extra features or not.
Next question that comes to a person's mind is that, whether i want a fixed rate or variable rate of interest?
The interest rate is the rate charged on purchases and cash advances. These rates can be fixed or floating. Fixed rates are usually fixed as bank charges them at fixed rate of interest while floating rates are usually lower than fixed rate of interest.
What will the annual rate of interest that i need to pay?
The annual fee is the amount that the credit card issuer charges you annually.
During the time of renewal can i get annual fee waived off?
Many lenders waive off your annual fees if the credit card holder requests them to do so. There are certain conditions for it. Some do it if you charge a certain amount per year. While others may agree if you fulfill certain criteria.
What about the application fees?
The application fees are extremely rare with unsecured cards but they are common with secured cards. These fees are legal and you need to read the terms and conditions before you agree to pay the application fee.
What other fees should i consider?
Most of the cards have an over limit fee if the customers make a purchase beyond credit limit. The common over limit fees range from $20 to $29.Some of the card charge an over limit fee in addition to finance charges.
Why is the grace period important?
The grace period is the time span after your billing date, this is the time when you need to pay off your bill without paying finance charge.
You should take into consideration three important factors before purchasing a credit card. These are
interest rate, annual fee, grace period. Legally all credit card companies are required to inform the customers about the three factors mentioned above. Apart from these, there are other features offered in credit cards like rebates, frequent flier miles and others. You need to decide whether you want to pay the higher annual fees for those extra features or not.
Next question that comes to a person's mind is that, whether i want a fixed rate or variable rate of interest?
The interest rate is the rate charged on purchases and cash advances. These rates can be fixed or floating. Fixed rates are usually fixed as bank charges them at fixed rate of interest while floating rates are usually lower than fixed rate of interest.
What will the annual rate of interest that i need to pay?
The annual fee is the amount that the credit card issuer charges you annually.
During the time of renewal can i get annual fee waived off?
Many lenders waive off your annual fees if the credit card holder requests them to do so. There are certain conditions for it. Some do it if you charge a certain amount per year. While others may agree if you fulfill certain criteria.
What about the application fees?
The application fees are extremely rare with unsecured cards but they are common with secured cards. These fees are legal and you need to read the terms and conditions before you agree to pay the application fee.
What other fees should i consider?
Most of the cards have an over limit fee if the customers make a purchase beyond credit limit. The common over limit fees range from $20 to $29.Some of the card charge an over limit fee in addition to finance charges.
Why is the grace period important?
