| True | False | |
| I pay my card off every month | ||
| I will be transferring a balance | ||
| I will be using this card for new purchases | ||
| I am sometimes late in making payments | ||
| I use my credit card for cash advances |
Take a look at your results. If you pay your card off every month, you should get some kind of rewards card. These cards generally carry a somewhat higher interest rate, but if you’re paying them off every month on time, this won’t matter to you. Get the benefit. But watch out for annual fees. Once you have a card, it is often possible to talk your way out of the annual fee. It’s always worth a try, especially if your credit is good.
If you are transferring a balance, look for a card with a low introductory rate for transferred balances. But watch out for the rate on new purchases, which is typically higher, and your payments will be credited toward the transferred balance first.
If you will be making new purchases, you want to have a low interest rate for them. Don’t fall for a low rate only on your transferred balance if it will mean you’ll pay more in the long run. It just isn’t worth it.
If you are sometimes, even if it’s only once a year, late in making payments, make sure you know the terms. Many companies will jack up your interest rates tremendously if you are even one day late. If this doesn’t happen often you can often call and get the rate dropped, but don’t count on that if this is a regular issue for you.
Know how much you’ll be paying for cash advances if you intend to take advantage of this. The rates are often higher than for purchases or may carry an additional fee.
Know all the fees the company charges. The most commonly charged are annual fees and late fees. However, there can be charges for cash advances, exceeding your credit limit and even for closing your account. When you sign up for a credit card you are signing a contract, so you must be prepared to live with the terms.
It takes a lot of research to know which credit card is right for your needs. Pay attention to all the terms before accepting a credit card and manage it wisely.
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