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When you are out there looking for the right credit card service provider, it is always a good idea to research the offerings available to you. There are a few things that you must clarify before you apply for a credit card to prevent any unpleasant surprises at a later stage.
What is the Cost of the Credit Card?
There are a number of cards out there that will seem like the best option for you, but the question of foremost importance is how much the credit card will cost you every year. While there are a number of credit cards with no annual fee, others can have an annual fee ranging from 50 to 500 dollars per year. If your credit card provider advertises that the card is available with no annual fee, you should probe further. Some providers have special deals that waive off the annual fee for the first year, but then have a hefty annual fee thereafter. Other providers may have a promotion where you pay no annual fee based on the application being approved within a certain timeframe.
What are the Interest Rate Charges?
It is beneficial to find out what interest rates are applicable on the outstanding balance on your credit card. Ask your provider for interest rate charges on purchases, balance transfer and cash advances. The interest rate charges are different for each of these, and it isimportant to be aware of each applicable rate.
What is the Over-Limit Fee?
Review your over-limit charges with your service provider. The rate is usually very high, so you should try to prevent exceeding the allocated credit limit. Both your rate increases and you are assessed a fee, so you should try to pay close attention to your limit.
What Sort of Card Rewards Can Be Accrued?
Many credit cards offer the option to accrue credit card reward points on most purchases. These points can be used towards purchasing merchandise, or even transferred as frequent flyer miles on eligible frequent flyer programs. In other instances, credit cards can offer a reward, such as a nominal percentage of cash back on all eligible purchases that you make in a given year. You should be aware of your options to maximize the benefits that you can be eligible for.
Late Payment Charges?
The service providers usually charge either a fee or higher interest rates, should you fail to pay your minimum monthly payment on time. Ask your provider what they do in such case. The service providers can even block your card, and bar you from using the card any further should you fail to make the payment on time.
How Much Does it Cost to Have Insurance on Your Card?
Most service providers now offer credit card insurance that protect you from card theft, disability payout or death payouts. Ask your service provider for options that may be available. These charges are typically calculated as a nominal percentage, based on the average outstanding balance of your account.
