Things To Consider Before Getting a New Credit Card
Credit card offers are everywhere nowadays. They arrive by email, phone and in the mail. You’ll find them beside cash registers and at petrol stations. They come with enticing prizes, free gifts, discounts and rewards, but before you give in to temptation there are some things to consider before getting a new credit card.
With credit card debt causing so many problems for people today, you need to ask yourself if you can handle the responsibility and temptation that will come with a line of credit.
One of the most important things to consider before getting a new credit card is which is the best offer. Shop around for the best rates and terms to go with the rewards. If you intend to apply for a vehicle or mortgage loan one day, beware of opening too many new accounts. A lot of credit checks could raise red flags, and having too much credit can also adversely affect your rating.
Be sure that your credit is sufficient for the card you want, and that another check won’t be bad for your rating. As with any tool, a credit card should be used wisely, or it can do a lot of harm.
Things To Look For Before Switching Your Credit Card Balance
You could save a fortune in credit card interest charges if you play the balance transfer game, but there are some things to look for before switching your credit card balance.
Make sure you know when the 0% introductory balance transfer offer ends before your transfer your balance to a new credit card, because you’ll pay a higher standard interest rate when the grace period is over.
If your balance isn’t paid up by the time the 0% offer ends, start looking for another card approximately six weeks prior to your current deal ending. Another one of the important things to look for before switching your credit card balance is whether the rate you’ll get on the new card is the one you’ve seen advertised.
Check how much the balance transfer fee is, because the majority of credit card companies will levy a balance transfer charge, which is usually 3% of the balance you’re transferring, but this differs according to the provider, and some offer fee-free transfers. Consider if what you’ll save on the 0% introductory rate is worth the cost of transferring your balance, or whether a low APR or fee-free card would cost less in the long run.