Three Keys to Best Credit Card Deal
A Credit Article Contributed by Tushar Goel
Understand Credit Card Deals.
What is the secret behind finding a best deal when hunting for a credit card. There is no as such secret, it is just you should know what you are buying. As the rule applies to each and every stuff that you buy from a market place, so it does to a credit card deal. Take for example a fine quality shirt. As you look for all the qualities such as the make, the style, the cloth quality, the brand, the price while buying an expensive shirt, so do you have to while purchasing a credit card deal.
You have to take into consideration that the card that you are choosing is best in terms of the rate of interest that it offering, the fine prints in its rule book, the grace period and all. A nicely planned and then chosen credit card deal may thus prove to be long lasting and satisfying venture.
Number 1 - Apr of Credit Card Deals.
What is APR? APR is annual percentage rate. It is the rate of interest that is levied on the amount that you borrow on your card. It is a simple math and you can yourself calculate what the interest rate should come out to be on the amount that you have borrowed. By definition the interest is calculated in terms of the average compound interest in that particular time.
There are two major categories of the interest. One is the lesser prevalent or shall we say lesser popular one and that is the fixed-rate of interest. In this type of interest, the rate at which interest is charged is fixed at one particular number, for example 12.25% and it does not goes down from there. Although you should not here that it may go up but they should get a notification 15 day prior to the increase in writing as it is required by law.
Second category is the most popular one. That is the variable-rate of interest. In this category there is generally a floor to the rate of interest and the rate of interest vary depending on an index. The most followed after index is the Wall Street Journal rate index. It happens generally that the interest rate on your credit card goes up when the index it follows goes up and it goes down when the index it follows goes down but what you should, as a customer, monitor is if the rate goes down as fast as it goes up?
Number 2 - Fees in a New Credit Card Deal.
It is most important to know about all the fees of the Credit Card. The customer should be aware if there the credit card company is applying any credit card fees. These fees may have different names. The most popular one is Annual fees. Now more and more free cards are prevalent but customer should still read between the lines and avoid such fees. Other types of fees are late fees, over-the-limit fees only any other kind of fees that are inserted between the lines.
Number 3 - Grace Period of the Credit Card.
You should not take a credit card that does not have a grace period. Nearly every card allows a grace period of say 20 days to the customer to pay up the principal amount before it applies any interest. Do not take a card which does not give any grace period.
