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Credit Card Considerations
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Here is a list of items that you may want to consider when looking for a new credit card. * APR (Annual Percentage Rate) -- This is the rate of interest that you will pay on any outstanding balance. * Special Introductory Rates --You may be offered a low or 0% 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. * Balance Transfer Rate -- Card issuers may offer you a lower rate of interest if your swap your balance from another credit card to theirs. * Interest Free period -- Remember to 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? There is usually no interest free period for cash withdrawals. * Cashback and Rewards -- Some cards over points or rewards for every pound spent on the credit card. Make sure that these are appropriate for you. For example, there's no use collecting air miles if you never fly. * Minimum Repayment -- Remember to check what the minimum monthly repayment will be. If you borrow $1000 on your credit card the monthly minimum repayment will probably be in the region of $25. But if you only pay this amount each month it will take a long time to pay off the balance and cost a lot in total when you include the interest payments. * Annual Fees -- This is the fee that the issuer will charge you every year for using their credit card. Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you. * Late Payments -- 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. A good way of doing this is to set up a direct debit from your current account. * Exceeding Your Limit --You may also be charged a fee if you exceed your credit limit.