Things to Consider When Choosing the Right Credit Card for You

Are you fed up with having to travel all around town, dealing with high-pressure salespeople or sifting through junk mail trying to work out which credit card offer is the best for you? If this is the case, you are with many others and now it is possible to avoid all that trouble because you can go online and obtain quotes on credit cards that are guaranteed. It is incredible how misleading many of the letters are and indeed so is the degree to which the salespeople twist the truth. Even some of the advertisements online are misleading regarding their claims that they are able to offer “guaranteed approval” for credit cards.

Not all applicants are successful in obtaining a credit card. Most people with bad credit have difficulty in getting a credit card and they are discouraged as a result of the rejections. Going online can be of assistance as there are more providers willing to help those who have concerns with their credit.

There are very few providers who are willing to take the risk and offer low interest rates to people who they deem to be a credit risk, but there are some that will charge excessive fees and high interest rates to anyone with a bad line of credit. If you fit into this category, often this is the best solution so long as you commit to paying off the debt within the time period.

Credit cards have some things in common with loans – the cardholder is presented with a line of credit with interest to pay. These lenders are also similar to banks: you are required to complete an application and must agree to the terms and conditions placed on you if your application is approved. There is a difference between banks and credit cards, however: you must sign an application and await approval. The concept of “guaranteed approval” therefore is a trick or lure. Your credit rating must be verified before approval as must the information you have provided.

Some of these credit providers will take longer to process your application. To be sure of who you are dealing with, then, it is advisable to check each card and its features individually, comparing interest rates, fees and the reputation of the provider. This can all be achieved online.

It is vital that you compare the terms & conditions, fees, benefits, and interest rates very carefully before you make that final decision. The annual percentage rates (APR) must be carefully considered as well before applying for a credit card. It is extremely frustrating to obtain approval only to be disappointed by unanticipated costs.

Another consideration when applying for a card is the “grace period”. These allow the consumer the choice of either paying or avoiding extra charges as long as the balance is paid in full before the due date. If there is no information regarding grace periods, then it may be the case that the lenders will request additional fees whenever it suits them.

The annual fees (sometimes called participating fees) mostly vary in cost from $25 to $100. Cards with more “status” ie Gold or Platinum cards charge $75 often and there are still others that expect fees of hundreds to be paid. A few will permit the cardholder to pay the annual fee or the visa card balance with the first statement, which can be a help as long as you are able to pay the debt when it comes.

There may be even further fees included with approval such as transaction and supplementary fees. Be wary of those that offer cash advances as some will have fees attached to the advance. Choose carefully and review Chase policies to avoid these pitfalls.

Credit cards, when used properly can be extremely useful, but when placed into the hands of people struggling to make ends meet, they can be like a plague.

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