Why Credit Cards

Why do you need credit cards? What is the purpose of having a major credit card? Can I control my spending if I apply for a major credit card? Notice this piece started out with questions, which I feel are three of the most important question anyone should ask, seeking a credit card. If you do not ask these questions before a applying for a credit card, guess what you will be saying later. Why did I apply for a credit card? What was my purpose? I wish I could have controlled my spending. This may or may not happen, but if you are searching for a credit card, you may want to ask your self-first, why you need a credit card.

Credit cards include Visa, MasterCard, Citi Cards, HSBC cards, American Express, and other types of cards. If you are searching for a credit card, you will need to understand what companies manufacture the credit cards, since some companies are replicating, taking people for a ride. You will also need to know the difference between Fixed Rate cards and Variable Rate cards. The Fixed Rate cards rarely change their APR, which is very important, while the Variable Rates are subject to change anytime they feel needed. The APR or Annual Percentage Rates are often steep on most credit cards anyway, but for the most part you will need to learn the difference between Variables and Fixed to
avoid extra charges.

APR rates can start at 9.99% up to 17.99% and sometimes higher. It depends on your situation, but for the most part many card offers have the same rates. If you have no credit then you really need to research the marketplace carefully, since most card providers will consider you a risk. If you have bad credit, you will also need to search the marketplace carefully, since most cards for high-risk consumers have high upfront fees, plus high APR, and other fees.

The grace period is ESSENTAIL, since if you go over the grace period you are subject to additional charges. The grace period can extend to '25' days, sometimes 20 days, and rarely more than 30 days. If you find a card with low interest rates and fees, with a grace period of 30 days, then hop on it. You are the lucky one, since these cards are next to impossible to get.

Annual rates are also important, simply because some card providers charge nominal fees for providing the card to the client. Many cards offer 0% APR and no annual fees. Be carefully that you read the Terms & Conditions carefully, since companies are on the marketplace misleading millions.

Balance Transferring is another issue you want to compare and consider. The transfers can run into high charges if you are not careful. Again, you want to remember your purpose of getting a credit card in the first place, and if that purpose is to provide you security, then the balance transfer is part of that purpose to consider. Some companies charge high APR on balance transferring.

Statements
You will also need to keep track of your statement if you are accepted for a credit card.
The statement is important since it will show you the balance, APR, and any other details
relative to your dues. If you notice any wrongful activity, it is important to file a report
against the card providers immediately.

Limits
There are limits on credit cards. This is another area you want to be careful, since if you
go beyond the cards limit, then you are subject to pay charges. Most credit card
companies are like anyone else in the world, they are out to make profit. If you feel you
have gone over your limit, be prepared to pay, since many companies will not allow room
for time.

Late Charges
Credit card providers also charge 'late fees' against credit cards. If you feel you cannot
make the full payment on time, try to at least make the minimal payment. The minimal
payment will save you from late charges, but it will not save you from additional charges,
known as APR.