Thinking of getting a credit card? Is this your first time that you will be getting a credit card? And are you aware of all the factors about comparing credit cards? Then, following points are surely going to be a great help to you. All the mentioned factors will help you choose the credit card for yourself.
Type Of Credit Card!
The first and the foremost factor that you must consider for comparing credits is to know and ensure what type of credit card you are willing to get. For this, you need to know what are the different types of credits cards available and what are their benefits-
Secure Cards
Those types of credit cards that need a security deposit and are best for those people who have bad credit or no credit.
Regular Cards
These are those type of credits cards that do not require security deposits but, consist of few features. Such cards comparatively posses a high-credit limit than secure cards.
Premium Cards
Gold, Platinum and Titanium, all these are premium cards that offer really high-credit limits and are also loaded with extra features like emergency service, travel insurance, etc.,.
Interest Rates
Yet another most important factor you must surely be considering while comparing different credit cards is the APR. APR, that is Annual Percentage Rate is basically a yearly interest rate which is either fixed or variable. This means that certain credit card’s interest rates are either remain constant for a certain amount of time or some might change depending on the balance amount you will keep on the card.
Grace Period Or Billing cycle
The grace period is basically the total number of days which the credit card holder had to pay off the bill without triggering extra fees or charges. It is important to consider the billing factor while comparing credit cards as this time phase will determine when the cardholder is required to pay off the interest on all the purchases he/she had made. The longer the billing cycle, the better the usage of credit card. To understand grace period in even more better words, you can say that it is a period that helps you get a free loan for a particular amount of time.
Credit Limit
Yet another most important factor that you shouldn’t miss to consider while comparing credit cards is credit limit. It is that limit that determines the amount, you will be allowed to use. Some credit cards have got preset credit limits while some different depending on the cardholder’s credit history.
So, these are four important factors that you must consider while comparing credits cards.
