Best Credit Cards

A Credit Article Contributed by Priya Katyal

Best Credit Cards

Best credit card is the one which can be conveniently used and is accepted through out the world. Credit cards can be a great financial tool. They are easy to use and convenient to carry around than cash. Furthermore paying for your purchases by credit card is more secure.

They are the best tool for building your credit score because every time you use it and then pay the monthly bills in time, it increases your credibility with the credit card issuing companies and these credit card companies put a good remark in your credit report, thereby enhancing your credit score. Higher the credits score higher the limit of credit you can get from various financial institutes. So the credit cards are the much better option of paying for your purchases than cash.

But at the same time they should be used judiciously because if used frivolously one may fall into a debt trap and end up owing more money than you can pay. This can damage your credit ratings, which in turn will create difficulties for you to get finance in the future.

Best Time to Get a Credit Card

To qualify for a credit card you must be 18 years old and have a regular source of income. But you'll still have to show that you're a good risk before they grant you credit. The other important thing taken into consideration before issuing a credit card is your credit record. Your credit report maintained by major credit bureaus reveals how responsible you've been in paying your bills and helps the credit card issuer decide how much credit to extend.

So its advisable to check your credit report first and then apply for a credit card. You can get a copy of your credit report from one or all of the three major bureaus: EQUIFAX, EXPERIAN and TRANS UNION.

Getting the Best Credit Card Deal

Always shop around before selecting a credit card. Different credit card issuers offer different credit card deals. So it will be advisable for you to compare different credit cards with each other before applying for the best credit card. You can compare some of the important features such as:

. Annual Percentage Rate (APR):

The annual percentage interest is the amount of interest you are charged with while using your credit card and is expressed in yearly terms. This is the important feature to consider as the lower APR is better the credit card.

. Annual Fees:

Different companies issuing credit cards charge different annual fees. The best credit card deal will be which offers lower annual percentage rate and annual rate.

. Free or Grace Period:

This is the time between the date of a purchase and the date interest starts being charged on that purchase. It is usually 21 days for the best credit card available in the market.

. Other Charges:

Other charges like cash advance fee, balance transfer fees, application fees, etc. should also be considered before applying for a credit card.

. Customer Service:

Most of the credit card issuer offer round the clock customer service.