Today people have a tendency to overbuy — they buy things they hardly need. Presence of newer types of gadgets, inventions and services combined with marketing tactics lure people to go for things and services they may not really need. The widespread prevalence of credit cards has made buying easier than ever before. This “plastic currency” has virtually replaced the hard currencies of all shades and denominations. To a large extent, credit cards “culture” is responsible for overshopping.
Since everything costs money buy vcc, numerous financial instruments have come up in the market to provide you with easy money (and which often becomes difficult to repay). Credit card is probably the most widely used financial instrument helping you with the “buy now and pay later” culture of the modern technology age.
Convenience is the most offered reason when someone applies for a credit card. Other offered reasons are need to manage finances, requirement for extra money, or developing a background for a later big loan (to cover a big expenditure). Disregarding the reasons, no one can deny that Credit cards offer real convenience to make payments (particularly when you have no money). The other convenience is that you need not carry cash with you all the time — just the credit card is sufficient.
You must have, by now, received several types of offers for pre-approved credit cards in your email or snail mail. You are lured with the offers of low APRs, nil annual charges, and many other such gimmicks. If you are vulnerable, you fall for such so called “value” deals without knowing or reading between the hidden lines.
If you are seriously considering having a credit card, then read through the tips given here on your trip to credit card shopping. Rest assured that they are not very complicated and you can easily follow them.
It is utmost important that you make yourself comfortable with the credit card terminology. For instance you would want to know the meaning of the phrase “credit card” itself. The answer is: it is a type of borrowing involving charges. Credit cards come with underlying terms and conditions which determine your overall cost of borrowing. Another important term is APR, meaning annual percentage rate. It specifies the annual rate of credit. APR serves as a useful parameter to compare to cost of credits of different credit cards. You will go for the lowest, of course. You would also like to know the billing period and the periodic rate.
There are several other terms such as free or “grace period”, transaction fee, the computation method to arrive at figures such as average daily balance, previous balance, adjusted balance, etc. If you find that you are getting lost in the terminology and becoming impatient, at least learn how they arrive at the balance which will appear in the monthly statements.
Finally when you feel informed enough and are ready for credit card, go though this three step exercise leading to application for the desired credit card. First, use your Internet surfing skills and search about credit cards to make yourself familiar with various credit cards and their terms. Then, analyze and compare your researched data to short list one that suit your needs most. And finally apply for the selected card either online, or by filling in the credit card application form or by going to a bank representative. Doing your homework properly is essential get a proper credit card which has cheapest rates.