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Options For The Best Credit Card
By: David Riewe
Consumers who want to maximize their options on a credit card should first find
out all the terms and related costs associated with a particular card. For those
who feel that the best credit card is one that is low-rate and no-frills, they
should determine if the card has annual charges, as no-frills users do not need
to pay such fees. Some upscale prestige cards, air-mile credit cards and similar
rewards packages collect annual fees in exchange for perks, services and other
rewards.
The definition of a best credit card varies depending on personal preference.
Individuals currently have many options available in the market, including
instant approval cards, cash back credit cards, low-interest credit cards and
prepaid debit cards.
The percentage rate (APR) is another crucial element users must weigh before
signing up for what they feel is the best credit card in the market,
particularly those with balances, as lower interest rates mean lower payments
for carriage and substantial savings.
For fixed-rate cards, owners can expect interest rates to be more stable – a
credit card on 12.99% interest is likely to remain at that level for a
relatively longer period of time compared to a variable card. However, holders
decided on securing the best credit card should be aware that even fixed-rate
terms could change, although card companies are required by law to issue a
written notice for any rate adjustment at least 15 days prior to their
affectivity.
Variable-card customers need to know if their plans feature minimum APRs, or
‘floors’ – the lowest-possible levels that interest rates could fall to,
inclusive of any adjustment by the US Federal Reserve. A Bankrate.com poll
indicated floors for 24% of variable-rate issuers surveyed, with 75% of that
group already at minimum APRs through October 2001. This means that the interest
rate on these cards will only go up in the future.
How long or short a grace period is for settling balances is another factor that
customers seeking the best credit card should consider. Since interest charges
kick in when the grace period lapses, a company offering longer grace periods
means a more extended time for users to settle outstanding obligations without
paying interest before their next card purchases are penalized.
Individuals seeking the best credit card deal should also be aware of all
penalty policies covering missed payments, purchases exceeding the limit or
balance transfers. First USA and other providers have a $35 ceiling for such
transfers, while Citibank has a $50 cap.
About the Author:
David Riewe is a Publisher and Online Marketer. Visit his Credit Resources Blog
Below:
http://www.push-button-online-income.com/creditcards/
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