Using credit cards is widespread, but many people still do not know how to choose and use these cards. Many people are dismayed with discounts and incentives that do not understand that it is only a tour of more than they need.
It is no different when it comes to your credit card. It is clear that the search of the best offers for hotels not guessing game, the time not to try, a comparison of the market. Fortunately, there is information of this type of credit card guide, you’ll learn a system and intelligent use of credit cards.
Types of credit cards
There are three types of cards: the travel and entertainment, such as American Express and Diners, bank cards, including MasterCard, Visa, Discover and Optima, and business or a reseller of cards such as Sears, JC Penney, and so on.
Factors taken into account in the choice of cards
When selecting the card, it is important that we know the credit terms and read Credit Card Guide because they affect the total cost of credit, and can decide if you have a good deal or not.
The annual fee – which is the general level, the annual costs of approximately $ 25 to $ 50 is a good idea for businesses, the absence of such levies.
APR or annual percentage rate – the cost of credit, including all charges and interest, expressed as a yearly rate. Some companies offer introductory 0% Annual Percentage Rate for a limited time. If you prefer this type of card, make sure you know, the period of introduction, and that the real interest rate thereafter.
Financing costs – the amount you pay for using your credit card. That is what the interest and the cost of the transaction.
Grace Period – leisure. This period is usually about 20 to 25 days, gives him the right to acquire an interest free.
Of the fee – to pay for the costs of delay in payment, the credit limit or not to use the card within a month. Keep your eyes on these costs because some of them severe penalties.
Calculation of the fee – a method of calculating the financing costs which are the difference in total cost. The three methods are:
1. The average daily balance method – interest is calculated on the basis of the average credit amount in the previous month.
2. Method for correcting the balance – the balance by subtracting payments and repayment of any funds in the last month of billing. This method is very beneficial for cardholders, as well as financing costs.
3. Return Method of balance – the more expensive, what you should avoid. In this case, the financing costs is the state at the end of the previous accounts that do not resemble the compensation and new purchases.
Tips and Tricks Credit Card
• Research on global credit cards. Guide to best credit card is more interested in their needs, not the promotion of certain businesses.
• Compare interest rates and care by the most competitive.
• Try not to blind on discounts and privileges, first draw should be spending more than you.
• Keep your financial data in depth.
• Be reasonable, that the definition of credit limits for you.
• The terms and conditions and small closely.
• browse the Internet. Remember that there are many credit card offers online.
The financial market is great, and it is very easy to lose. In today’s world, it is a smart consumer you must carefully and searching first a lot of information about Credit Card Guide, Credit Card Tips etc.