There are reasons why some people prefer this type of credit card, others that and more people don’t care much about another!
People choose credit accounts for different reasons: interest rates, charges, incentives and rewards and their qualifying requirements. When applying for credit, especially for the first time, there are a number of things to consider. It is unwise to grab the first credit offering that come your way because if you realize half though that it is not really for you, it can bring about problems that can greatly affect your credit rating.
A good, if not impressive, credit rating is important as this can influence your future financial endeavors that include applying for better credit accounts and loans for your home or car. Bottom line is, there are credit cards that may be good for you and there are others that are a bad decision. So before you even apply, compare all available credit offerings you qualify for and take your time to choose.
One way to tell whether a charge account credit service is for you or not is to understand how these payment facilities work in the first place. Plastic money don’t stop at being a convenient way to pay for purchases without cash, almost every transaction you make with these facilities come at a price so beware and think twice before you swipe.
Here are some facts you need to know about plastic money:
· Credit providers and banks often work with other companies (i.e. airlines, cell phone companies, retail chains, etc.) to offer the best incentive plan to gain customer loyalty. If you are the kind of consumer that enjoy shopping, travelling, dining, etc. then a co-branded plastic money may be the right option as this payment facility can give you access to promotions and discounts which are otherwise unavailable to regular cash-paying consumers. You can earn points in purchasing commodities and services using the payment facility and redeem these through items and cash backs.
· Credit card providers impose varying rates on the credit account’s balance. There are some providers that offer lower rates on balance transfer but could impose a higher regular interest rate later on once you’re already with them for some time.
· Another deciding factor is the credit provider itself. The largest and most trusted of all credit card companies are MasterCard and VISA but there may be smaller or newer companies that offer better consumer incentives.
· If you think that credit providers earn solely from the interest they charge on the balances, think again. They also earn from the annual fees they collect from their cardholders. Some companies charge higher annual fees but lower interest rates and others charge lower annual fees but they impose higher rates.
These are only some of the things you need to know about credit cards which can influence your choice. The selection process could be a little frustrating but it will all pay off once you get approved for the right credit account that suits you best. When you finally get your plastic money, don’t forget to use it responsibly and pay promptly.
