What You Should Look At To Compare Credit Cards?

What You Should Look At To Compare Credit Cards

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Are you flooded with information about credit cards, the deals, offers and interest rates on outstanding dues? If you are getting more and more calls from credit card agents singing paeans about their own cards, you need to step back and streamline your process to compare credit cards. This might not be an easy task and after all due diligence some people still end up making a wrong choice.

This is partially because of the amount of information available due to which some valid points and key issues with a credit card might be missed. It could also be because of extravagant offers which have associated strings, conditions and strange terms which may not prove so attractive after all.

How To Compare Credit Cards?

The first step is to always know your purchasing power. It might seem strange but the best thing sometimes but you might have to say no to a few things that credit card companies offer you. This will save a lot for you in terms of expenditure in the long term.

Do not compare credit cards based on the credit limit on offer. Some people in business need higher limits for bigger expenses, but otherwise, it is best to take credit cards with lower expenses. This will ensure you will never cross your limits of spending. You personal salary might enable you to get a greater credit limit, but lower limit is safer for you and also in scenarios of card fraud, theft or misuse. The upper limit is under your control.

You should compare credit cards based on the regular interest rate if you are planning to use it on the long term. Some credit cards have low interest rates initially but if you don't have outstanding dues and have a good credit history, it is better to take a card that will charge you less in the long run.

Always look out for processing and annual fee. Some credit cards waive off these charges while others have hidden charges which you must ensure you know.

Special Benefits

A part of the attraction, when you compare credit cards is the big offers. One movie ticket free for another, cash back offers in your favorite stores and discounts all help you save a lot of money. But you must be cognizant of the fact that you end up spending more than what you have saved because of the comfort of the cushion that these discounts provide. A good example is watching a movie to avail the offer, when you wouldn't have paid even for the single ticket otherwise. Similar is the case with shopping. So a decent amount of self restraint is expected from credit card holders.

Security of the card and what are the card protection features available is one thing you must know about. Three digit security code, theft assistance, zero liability and constant fraud monitoring systems are some of the benefits some cards provide. These are always safer and hence give you less anxiety compared to cards which do not have extensive card protection systems in place.

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