Credit Card Comparison Factors
In the hands of a fiscally responsible individual a credit card can be a wonderful way of handling finances. Through a credit card a consumer can delay the paying of items until a later date. This is extremely beneficial if that person is between paydays or needs to purchase something that is beyond their financial means at the time of purchase.
However, as with anything there can be a downside to credit cards. Some of the negative aspects of credit cards include living beyond one's means, accumulating large amounts of indebtedness and paying exorbitant interest rates on balances that are not paid off.
Therefore, when making application to secure a credit card it is important to conduct credit card comparison. Credit card comparison is the wise process of comparing the terms of one credit card against another credit card. The process of credit card comparison can be accomplished in a number of ways. In addition it is important to include certain factors into that comparison research. Two of the most important credit card comparison factors include percentage rate and awards offered.
Ways To Conduct Credit Card Comparison
Before blindly making application for the privilege of utilizing a credit card, it is important that the individual do their research and homework. This will ensure that the right credit card company is selected and matches the financial needs and credit use of the individual.
There are a number of ways that credit card comparison can be accomplished. One method is to log onto the Internet and conduct a search. The Internet surfer can use such phrases as credit card comparison, APY credit card, etc. Often a number of web sites will be returned that highlight credit cards claiming to offer the best rates and other appealing claims. Often, the best website to research these claims is one that has already conducted the research and offer side-by-side comparisons of each of the credit cards.
Variables Regarding Credit Card Comparison
When conducting credit card comparison it is important to take into account a number of variables. Some of those variables include the APY, yearly costs and rewards offered.
Probably the most important consideration when conducting credit card comparison is the APR. APR stands for annual percentage rate. This is the interest cost to the consumer that is used to calculate the interest rate on any balances carried by the credit card holder. Sometimes the APR will be an introduction rate and maybe very low and offered to the applicant for a brief period of time. However, it is critical to investigate what the APR will be once the introductory rate has expired. The APR can range anywhere from 0% to mid-20% range.
Also, when conducting this comparison it is important to determine whether there are any annual fees. An annual fee may negate any benefits offered by the credit card company and may not be worth the expense if the card is seldom used.
One additional variable to consider when conducting credit card comparison is to take into consideration any rewards that are offered by the credit card company. Some of these rewards may be in the form of points offered based on the amount of credit purchases made. Eventually, these points can be redeemed for items that are offered.
Also, some credit card companies offer a cash back incentive. Specifically a small percentage is multiplied by the dollar amount of credit card purchases made. At a certain point, according to the terms, this dollar amount can be redeemed or credited back on the monthly statement.
