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Since there are so many credit card companies to choose from, deciding on the right one for you can be a truly daunting task. To
help you find the right card, here are the top 7 FAQs:
1. Students
If you are a student, your application is likely to get accepted without problems if you apply for a student card. Before
applying for credit anywhere else, contact the bank where you have your student account.
2. Transferring A Balance From Another Credit Card
If you decide to transfer a balance from one credit card to another, look for a card with a low APR on balance transfers. APR
-- acronym for Annual Percentage Rate -- is the cost of credit, expressed at a yearly interest rate. Beware, however, if a credit
card offer promises 0% introductory rates for 6 to 9 months, as there may be a catch somewhere!
3. Make New And Large Purchases
If you plan on making new and large purchases, pay more attention to the APR for purchases, usually entirely different to the
one for balance transfers. Also, so that you don't end up paying interest on your purchases straight away, find out what kind of
grace period different cards offer.
A free period -- also called a "grace period" -- let's you avoid finance charges for a specified time before you are required
to start paying your balance. This is important because without a free period, the card issuer may impose a finance charge from
the date you use your card or from the date each transaction is posted to your account. However, if your card includes a free
period, the issuer mails your bill at least 14 days before the due date so you'll have enough time to pay.
4. Pay Off Your Balance In Full Every Time
Perhaps you have a lot of money or just use your credit card for emergencies. If this is the case, you probably pay it all off
each time you get the bill. If you are in this position, you don't need to worry about the interest rate, since you won't be
paying interest. However, make sure there's a grace period.
5. Other Fees
In addition to annual membership or participation fees, some credit card issuers charge a fee to get a cash advance, or make a
late payment. Some issuers charge a fee if you exceed your credit limit while some even charge a monthly fee whether or not you
use the card.
6. Customer Service
The availability of friendly and helpful customer service support can be an important factor, especially in situations of a
lost card or a charge that you wish to dispute. Choose a reputable bank that has excellent call center help.
7. Reward Programs
Consider the credit card that offers you the best reward programs or frequent flyer points for your needs.
Before accepting one of those credit card deals and "pre-approved" credit card applications that frequently arrive in your
mailbox, take the time to shop around for the right credit card for yourself.
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