Credit card deal: 4 things you must know before you apply for visa card, apply for MasterCard, apply for secured credit card or unsecured credit repair credit cards. The top question you must ask, Today!
Getting the best bank card deal, most consumers are surprised to discover they have so many choices when it comes to selecting a bank credit card.
You should examine all your options carefully before selecting what you think maybe a good credit deal. You will learn that there are great credit card bargains all over the nation as well as deals you should avoid. Compare bank policies before selecting your cards.
The following four features are a part of all bank card terms and should be reviewed before selecting a credit card deal:
1) Transaction Fees.
Banks have discovered that 50 percent of all cardholders pay their total balance at the end of each month. This, naturally, limits the dollar amount of service fees each customer will be required to pay. To remedy this problem and increase revenue, some banks have designed transaction fees.
For example, a major California bank charges 12 cents for each use of the card. The cardholders felt they were getting a deal because the annual fee for this card was only $10 per year .
However, for people who use their cards regularly, transaction fees can add up fast. Many cards charge no transaction fees, and may be far less costly than cards that impose fees.
2) Annual Membership Fees.
Annual fees are designed to boost sagging credit card income for the banking industry. Because most people pay off their monthly statements before finance charges begin, banks feel that annual fees are vital for survival.
However, some banks waive annual fees if you keep a minimum balance in your checking account. To evaluate the worth of this offer, check what the interest rate would be for your deposit.
If it is too low, you would be losing income that could be made from a deposit in another bank at a higher interest rate. The amount lost in interest may be greater than the money saved by not paying an annual membership fee.
3) The grace period.
Most cards offer grace periods to customers that pay off their balances each month. A grace period is the period after a purchase is made during which interest is not charged. If payment is made in full by the end of the grace period, no interest is charged and this is a good credit card deal. But if only a partial payment is made, interest kicks in at the end of the grace period.
Many issuers have whittled down the interest free grace periods on credit cards from 25 days to just 20. Some credit cards have no grace periods whatsoever, which means the interest clock starts ticking after each and every purchase. Avoid them at all cost.
4) Finance Charges/Annual Percentage Rate (APR).
These rates vary widely from state to state. Although each state has a legal limit or cap above which the rate cannot go, it is a very high ceiling.
The District of Columbia, for instance, has a legal ceiling of 18 percent (and also disallows annual fees). Many credit card companies now offer adjustable percentage rates as a way to entice the new card holder to transfer existing account balances.
This new low rate is only an introductory rate often limited to as little as six months after which the rate zooms back up to the card’s regular rate. Don't be taken in by offers of low balance transfer rates, because within a year you could wind up paying a higher interest rate than you did before the transfer.
Many banks neglect to put their annual percentage rate on their application form. This is because their rates often change, based on other interest rate indicators and the interest charged by competition.
You often don't find out the actual interest rate you are asked to pay until the credit card arrives in the mail and you sign on the dotted line. The best advice is to always read the fine print carefully before choosing your credit card deal.
The new card holder seldom has the willpower to return a new card, even one that arrives with a surprisingly high interest rate. Don't believe that all credit cards are alike, or that you must live in the same state to get a certain bank’s credit card. And don't be misled into believing that you must have an account with the bank to which you are applying.
It is important to check for transaction fees before applying for a bank card.
Credit Card Deal: Credit is more than just a plastic card used to buy things. It’s your financial trustworthiness. Good credit means that your history of payments, employment and salary make you a good candidate for a loan, and creditors (those who lend money or services) will be more willing to work with you.
Having good credit usually translates into a good credit card deal, lower payments and more ease in borrowing money. Bad credit, however, can be a big problem. It usually results from making payments late or borrowing too much money, and it means that you might have trouble getting a car loan, a credit card deal, a place to live and, sometimes even a job.
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Disclosure: I am an independent Credit Repair Cloud™ Affiliate, not an employee. I receive referral payments from Credit Repair Cloud. The opinions expressed here are my own and are not official statements of Credit Repair Cloud.