People apply for new credit cards all the time. An average person has more than one credit card. Each day, credit card companies approach potential customers with great deals and exciting offers on new credit cards.
Jumping in on the first credit card that comes your way or selecting one which sounds good just on the surface are not intelligent ways to choose new credit cards. Here are a few pointers to make the process easier and stress free:
Introductory APR rates are valid only for a short period of time
Many new credit cards come with unbelievably low or even 0% intro APR. This often proves to be irresistible for many consumers and most of them do not think beyond the huge discount in interest that they are being offered.
Remember that the intro rates are going to be applied for a short while and once the honeymoon phase is over, you will have to face regular interest rates. 0% APR credit cards and low interest rate credit cards are great starting points, especially if you want to transfer balances from higher interest rate credit cards.
However, before you say yes to new credit cards with low intro APR, examine the fine print to check for the terms after the introductory rate. Look out for hidden fees as well.
Variable versus fixed interest rates — what would you like?
Another important question to ask before saying yes to new credit cards is interest rates. Are the rates going to remain fixed throughout the duration of usage or will they vary? If it is variable you will have to pay higher rates each time a market index fluctuates. Generally, variable interest rate credit cards are based on prime rates. Every time the prime rate goes up, so will your interest rates.
Rewards and benefits are great but don’t forget to read the fine print
Some people opt for new credit cards exclusively for rewards and bonuses that come along with them. Spend some time and effort to understand the terms and conditions under which these rewards and bonuses will be offered to you. Most of these bonuses require a certain spending level to be reached before you can enjoy the benefits.
Beware of following the pack
Some of us who do not understand much about credit cards tend to pick up new credit cards based on the cards that our friends, colleagues, or close ones are getting for themselves. This “herd mentality” is not going to help much because what is right for them may not be right for you. Always evaluate the cards based on their pros and cons and not simply depending upon which of your close ones are getting them.
Getting new credit cards can become fun and turn into an exciting challenge if you follow the points hinted at in this post.
As a starting point, you may want to visit our credit cards page to check out new credit cards that were recently released. Compare the offers to determine which credit card would be best for you.
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