Generally speaking, credit cards happen to be so effective and handy tools but one thing that should be noted about them is that where these happen to be used indiscriminately, they have the power to inflict so much damage on your financial life. In the same manner that it so happens to be with a tool such a chain saw, which is so handy and essential, when it comes to the credit cards as a financial tool, you should ensure that you have picked the right tool for the job and as well follow the safety rules so as to get the most out of the tools you choose.
The following is a look at some of the things that you should take into consideration when it comes to your choice of credit cards.
First and foremost, one of the things that you are to take into consideration in your choice of a credit card is your spending habits. Talking of spending habits, you will want to take into consideration how you particularly intend to use the credit card. As such, you will want to take into consideration how you will be paying off the card, will you be paying them off at the end of every month or you will be carrying the balances from one month to the next, and whether these cards will be used for purchasing everything or for emergencies alone.
In the event that you so plan to make your payments on the cards in full at the end of each month, then you may not be so much interested in the interest rates. Where this is the case, you will be better advised to look at issues such as the annual fee and grace period and as such go for that which has no annual fee and a longer grace period so as not to find yourself hit with a finance charge at the end of the day. But in the event that you are looking forward to making the payments on the credit card with balances carried from one month to the other, then you may want to consider one that has the lowest interest rates possible and a low introductory rate. In the event that you will be making the payments with balances carried from one month to the next, then you will have to mind as well the balance computation method.
For the card that will be used for majority or all of your purchases, then you want to take a look at the credit limit which is to be as generous and should as well have a handsome rewards program.