When you ask people about credit cards, you will always receive mixed reviews. Some people have a delightful experience with credit cards, and some are still paying their bills.
If you are getting your first credit card, then you must know that it comes with a lot of responsibility. If you keep track of your credit card use and its billing, you will have a joyous ride. However, once you miss a payment, you might start getting in trouble.
Perfect Checklist before Getting a Credit Card
Whenever you get into any long term policy, product, or service, you need to make a checklist first. It will help you in identifying the best option. When you avail any credit card service, these are the following things that you need to add in your checklist:
Annual Percentage Rate
The annual percentage rate (APR) is the rate of the cost that you will need to pay in case you fail to pay off your monthly balances in time. When you are hunting for the right credit card, you can compare the APR of all the credit options that different banks provide. But do not take a card only based on APR.
Introductory Interest Rate
When you are getting a credit card, you need to know that initially, the bank will charge a minimal amount of interest or no interest at all. However, after some time, the interest charges will increase. Most banks increase the interest rate after six months.
So, whenever you are buying a credit card, look for how long the introductory rate is going to last. You should also check the amount of interest the bank will charge later, and then make a decision.
Minimum Repayment
You need to check the minimum payment because sometimes, when you are unable to pay off your pending balance, all banks ask to pay a small repayment amount. In most banks, it is a minimum of 3%. Your bank might have a different term, and also slightly different terms.
Cash Back
Many banks offer a cashback or a small interest payment to its cardholders, only if they can pay off the full balance every month. This cashback is one of the most beneficial details that you need.
Rewards and Loyalty Points
When you get a credit card for many stores, you start to get your discounts for every purchase from your card. The stores and your bank might also give you reward points if you buy more than a certain amount.
Charges and Annual Fee
When you buy a credit card, you need to make sure you know everything about annual fees for the car used at the end of the year. And before getting the card, go through all the terms and clauses on the credit card.
Conclusion
Buying your first credit card can be overwhelming, but you need to obtain one. When you get one, remember that you need to pay off its balance at the end of the month. So, make sure that you do not go overboard.
