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There are some useful tips are given that might help
you while choosing right credit card fir you.
What is credit card
A credit card is a payment card issued to a person for purchasing goods
and services and obtaining cash against a line of credit established by
the issuer. Credit cards can be of two types: those issued by merchants
and vendors, such as department stores or oil companies, and general
purpose credit cards issued by banks. Any card, plate, or coupon book
that may be used repeatedly to borrow money or buy goods and services on
credit.
Choose a card that matches your needs
Make sure that the credit card you use is the most suitable for your
spending patterns. If using a card for extended credit and don't pay off
the balance in full each month, choose a card with a lower rate. It may
not offer any interest-free period, but the lower interest rate should
save you more in the long run. If you use your card for the convenience
of paying for everyday purchases such as petrol or groceries, try a
credit or charge card with maximum interest-free days, then make sure
you pay it off in full each month. This way you get the benefit of up to
62 interest-free days on purchases, as well as rewards, discounts and
frequent flyer points. But watch the annual fees on rewards cards.
1. Don’t let anyone swipe your card twice without giving you a
‘transaction cancelled’ receipt for the first swipe – card ‘skimming’ is
growing where fraudsters swipe cards through a second machine to record
details.
2. Be on your guard when withdrawing money from ATMs - if anything seems
out of place with the machine or people around you, don't transact.
3. Hang onto ATM receipts as proof of your transactions.
4. When buying over the Internet, deal only with reputable online
merchants whose sites offer full security (check the padlock sign at the
bottom of your web browser)
5. Don't send card details by e-mail, your details are not secure (if
you must, send half your card number through in one email, the rest in a
second message)
6. Avoid paying by credit card over the phone or by mail order. If you
must, only give card details to established companies with a verified
physical address.
7. Keep your card in sight at all times to ensure no-one copies your
card details.
8. Don’t store copies of your password or security number with the card.
9. Beware letterbox thieves – arrange to pick up new or replacement
cards from your branch rather than have it sent through the mail
10. Check statements closely each month and report any unauthorized
transactions to your bank immediately.
11. Read correspondence from your bank before discarding it – it may
contain important card account information and not just marketing
material
Tips for Comparing and Applying for a Credit Card Online
There are many different types of credit card offers to choose from
including low interest, balance transfer, instant approval, cash back,
frequent flyer, business, pre-paid, and even student credit cards. When
determining what is the best credit card offer for you, there are many
factors to consider. When you compare credit cards you should consider
all of the different rates associated with each offer including the
APR(Annual Percentage Rate), the Annual Fee if there is one as well as
other cardholder benefits.
A low interest credit card has either a low APR or a low introductory
APR. Some interest rates are even as low as 0%. A low interest credit
card can be a good choice for the individual who tends to either leave
an outstanding balance on their credit card or tends to pay their bills
late. A low interest credit card can help save you money by reducing
your interest and finance charges.
People who tend to carry an outstanding balance on a credit card with a
high interest rate might also benefit by applying for a low interest
balance transfer credit card. Balance Transfer Credit Cards allow you to
transfer a balance from an existing high interest credit card to a lower
interest rate credit card which can also help save you money on finance
charges.
Cash Back Credit Cards actually pay you cash back for making purchases
with their card. These credit cards usually offer rewards programs or
cash back incentives for purchases made with their card. With Frequent
Flyer Credit Cards you can earn airline mileage and free airline
tickets. For the business person who travels frequently a frequent flyer
credit card or airlines credit card can help save money and earn free
tickets.
Business and Corporate Credit Cards offer many cardholder benefits
including detailed credit card expense reports as well as travel reward
programs. Some corporate and business credit card offers even allow you
to have your company name on the card itself.
Credit cards
Enter up to 5 credit card accounts, one on each line.
Balance
Your current balance on your credit card.
Interest rate
The annual percentage rate you pay on this credit card. The rate you
enter is used to calculate the interest on all future payments for the
credit card. The length of time to payoff this credit card may be much
greater than calculated if you enter a low promotional interest rate
that is only fixed for short period of time.
Payment
This is your initial minimum monthly payment. You minimum monthly
payment is calculated as 2% of your current outstanding balance. While
your actual minimum monthly payment may be slightly different, this is
one of the most common methods used by credit card companies to
calculate minimum payments.
Credit limit
This is the total amount of credit you have on this credit card. The
optimizer will not allow you to have credit card balances that are over
your credit limit. |
