subject: Eight useful tips for comparing credit card - zero interest credit cards [print this page] Eight useful tips for comparing credit card - zero interest credit cards
The interest-free credit cards listed below offer an interest-free introductory period. Compare credit cards and then apply your choice by going online to complete a secure application.
Not all credit cards are equal, and compare different offers can be a challenge. What is best for one person may not be in another, so it is important to weigh several factors, including interest rates, fees, rewards programs and member benefits.
Not all credit cards are equal, and compare different offers can be a challenge. What is best for one person may not be in another, so it is important to weigh several factors, including interest rates, fees, rewards programs and member benefits.
Brad Stroh, co-CEO of Bills.com, lists some factors to consider when you want to compare credit card offers.
1. Card types
Credit cards vary widely, but are divided into three main classes.
Secured cards require a security deposit and are suitable for those who have no credit history or whose history is negative.
Conventional cards do not require any deposit, but offer few advantages. Credit limits are broader than secured cards but lower than first-line cards.
The first line cards (gold, platinum, titanium) offer larger credit limits and usually have additional benefits such as travel insurance or services in case of emergencies.
2. Grace Period
The number of days that are granted to pay the full amount of the invoice without generating finance charges.
3. How to calculate the finance charge
This is the dollar amount you pay for using credit and depends, in part, of the outstanding balance and annual percentage rate (APR). Companies use different methods to calculate the outstanding balance. The method used can significantly influence the finance charge. The outstanding balance can be calculated on one or two billing cycles, including or excluding the balance of new purchases and using the adjusted balance, average daily balance or previous balance. See if the card has minimal financial charges.
4. Fees and Charges
Some cards fixed annual fees, charges for exceeding the limit, penalties for late payment charges on foreign transactions, fees on balance transfers and much more. Pay attention to the fine print.
5. Characteristics of cash advances
Most advances have a higher interest rate than regular purchases. If you intend to apply for cash advances, learn about conditions (cash, "checks", APR, fees, limits and how payments are credited.)
6. Credit Limit
The credit limit is set based on your credit history, but some cards have a preset limit.
7. Incentives and rewards programs
Rewards cards can offer cash rebates for purchases, access your account online, frequent flyer miles, additional warranty coverage, car rental insurance, travel discounts, concierge services and more. If you have no credit history or history is bad, you may need to establish a good credit profile before granting you a card with rewards and incentives.
8. Interest rate
The interest rate stated in the offer of credit card and can be fixed or variable, but in practice do not vary much as the name suggests. Cards with variable interest rates linked to an index of the APR, generally the prime rate (prime rate), and up and down as interest rates change in the short term in the general economy. If you choose a fixed rate card, you may think that it avoids the risk of fluctuating interest rates, but it is not. Federal law allows card issuers to change any of the terms of issue, including the rate, with only 15 days in advance.
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Are you the type to pay the full outstanding balance each month, consider what it says Stroh: "a low interest rate is not as important as not having to pay annual fees or have a longer grace period long. "
Unfortunately, many people lack the discipline required to promptly pay the total outstanding balance each month. If occasionally carries a debit balance on their credit cards, you should ask for a credit card with low interest. The difference between a low APR of 10 percent and an APR higher than 20 percent, is significantly over time. Just remember that some cards have an introductory rate of zero percent which applies for several months to a year, but later is much higher. If you have to make major purchases, it is wiser to pay the outstanding balance during the time that still applies the introductory APR
If you plan to use the card to ask for cash advances, look for a card that has a lower APR and minimum charges for these advances, since the APR in these operations can be quite high. "Understand that a single credit card can have multiple TAE," says Stroh. "These included the APR for purchases, for cash advances, balance transfers for fines for late payments, initial APR, regular APR, which takes effect when the period expires introductory rate, fixed or variable APR and TAE "tied to an index" (where different rates apply to different levels of outstanding balance). "
To determine which credit card for you, remember that each one has its own conditions that you should analyze and compare before completing an application.
