There is simply no denying the fact that a credit card can be the key to more flexibility when it comes to your finances. However, it is important that you carefully choose a credit card company, card and deal to avoid getting yourself into debt. Below you will find some helpful tips of the key points you should be looking at before you sign any contract and even before you fill out any credit card application, Phillippines based or not.
Check The APR
The APR or annual percentage rate is the amount a credit card provider will charge you for any credit you spend. This includes not only the interest rate, but also any annual or monthly fees too. It is important to remember that the APR is based entirely on the purchase part of your credit and does not involve the cost of cash withdrawals and balance transfers. By using the APR as a guide you can effectively compare and contrast different credit cards. Generally speaking – the lower the APR, the better the card. However, some credit cards require a payment up front to apply for them, so you need to weigh up that cost as well as the APR.
Research The Fees Thoroughly
You will find that even if two credit cards have a similar APR attached to them, the fees are sometimes completely different. This is another good way of comparing similar offers and deals. Look out for returned payment, exceeding credit limit and late payment fees.
Consider Introductory Offers
Banks and other financial organisations who offer credit cards like to convince you to conduct business with them by making available offers that last for a specific length of time. By far the most common of these introductory offers is 0% interest on balance transfers and purchases. This obviously gives you a cheap way of borrowing something that you need or want quickly but don’t have the money at the time; but, know you will be able to pay it back in time. You need to consider carefully whether you will actually be able to pay it back within the introductory time period or not, or consider transferring to a different card for a new offer before that time is up or you could find yourself liable to pay interest.
Consider Carefully Whether You Need The Benefits Offered Or Not
Most credit cards, such as the BDO Gold credit card, come with benefits. As tantalising and attractive as these are, it is important when choosing a credit card to consider whether or not you actually need them. For instance, a concierge service/personal phone assistant who will book last minute flower deliveries, hotel rooms and train tickets; air miles and free travel insurance. You may find that a card that offers all of these extras with a higher APR is not as good a deal as the card with less benefits that you never needed anyway, but with a lower APR.