Credit card – How do i find a best deal?
Credit Cards, what it really is
Did you know that having a credit card is very important than a loan? Did you know that credit cards are the easiest way of managing our expenses? today we are going to explain briefly why we need one and how we can go about it if we need to get a credit card. Choosing the right credit card is very important as interest and charges vary depending on the issuer.
How credit card work
The problematic with credit cards is that often they don’t appear like real cash. You go into a shop, for a shopping, without any money on you but you come out of the shop or grocery with a trolley full of goods after swapping your credit card, you think, yes, I have bought with my money because I will pay at the end of the month. Of course, you have paid with your money, but remember that you will have to pay interest as well when you buy with your debit card, you don’t pay any interest, but with a credit card, you do. Your moneylender have set a total limit that you can spend on your credit card and this will depend on your credit risk, after consideration of your application, the lender will know what will be your limit and you can’t spend more that your limit, otherwise the charges and penalties will be very high, so don’t don’t just spend if you don’t have a plan for a minimum payment. Every month you will receive a statement in which you will have a minimum monthly payment you have to pay, otherwise, you will find yourself burdened with very heavy charges and penalties. Remember this will also affect your credit score and it’s going to be very difficult to get a credit or have another negative impact on your ability to get further credit as your credit rating will be negatively affected.
Credit card Interest explained
credit card interest is rated as (APR)Annual Percentage Rate and this is usually around 18% Even guaranteed rates can be questioned to alteration as creditors reserve the right to change it at anytime according to his judgment on the risk. Restraining the sum of interest, you have to reimburse on the money you borrowed can be completed in several ways.
- Try and reduce the balance– The lender has set a minimum payment for you to pay back every month, but it is highly recommended to pay more than the minimum as this will help you clear the balance quickly and also will reduce the minimum amount you will have to pay every month. You need to try and clear the balance as soon as possible as this will reduce the amount of the interest you have to pay on your credit card.
- Try and get interest-free: You can try your best and shop for a 0% interest credit card. When you apply for a credit card, you need to be careful, find a three years credit card interest-free will save you a lot of money. These offer long periods of interest-free credit, sometimes up to 3 years, either on balance transfers or on purchases. Balance transfer fees of around 3% are usually charged.
- Try not to withdraw money using your credit card.
It’s recommended not to withdraw cash using your credit card, there re additional charges for withdrawing cash with your credit card. Only use your credit card for your shopping in the shops and online and avoid withdrawing cash from an ATM machine.
- Try and do balance transfers– There is a possibility to transfer your existing credit card to a new one with 0%interset. If this is the case will always advise you to pay in full your balance before you do that to avoid penalties and charges which can be even higher. Take advantage of the 0%interest and save some money.
Have separate cards for spending and paying your debt. We always recommend having different cards to use when it comes to paying debts because paying your debts with your credit card can be dangerous as you will have to pay interest on your credit card as well as your lender. Always use a different card that can help you make transfers and paying debts is very important. It’s also better to have a separate card for purchases and balance transfers. Remember that all debts are charged on a different rate. credit card Management You need to shop around, try and find best deals, sales items. Find the right credit card will be very important. Now you know that Credit cards can be very useful if used very well, but this can bring a bigger problem if not used wisely. Plan your spending’s and also plan your repayment, there is a minimum you need to pay on a monthly basis. But the more money you pay, the less interest you pay and the quicker you complete the repayment Find the best credit card that will suit your need. Credit card –