Tuesday, January 29, 2013


Choice of credit cards is much easier when you use a method to compare the offers, according to the Federal Trade Commission. Organize your information by creating a spreadsheet of the credit card. Doing so will help you understand the benefits and costs of each card. Make comparisons and select the card you benefit more financially.

*Divide your spreadsheet into five columns labeled with the type of card subheadings, annual interest rate, fees, grace period and benefits.
*Select multiple cards from a reliable source or bank offers mailed to you.
*Examine each card agreement and copy information disclosure in the appropriate columns for each card.
*Compare cards using a spreadsheet of credit card
*Assess needs and discuss the type of card. Store cards carry high interest rates and low limits. Opening a merchant account too much detail can reduce your credit score, according to the Federal Trade *Commission. Apply this type of card only if you have no credit. In contrast, major credit cards usually offer more competitive interest rates, higher limits and not limited to a specific vendor. Cards function as major credit cards, but their balances must be paid each month.
*Determine the annual percentage rate and fees. Beware of credit cards that offer low rates touts introduction for a limited time. Current law requires creditors to contact when the interest rate will change and how it is calculated. Consider all costs associated with the card.Credit card companies may charge an annual fee ranging from $ 15 to $ 150, depending on the type of card. Discover how the creditor fees for late payments, cash advances and transferred balances.
*Check for a grace period. Most credit cards have a grace period-a period when you can avoid interest charges by paying the balance before it is due. A map with no grace period may impose financial costs on the date of the transaction is made or the date that each count is displayed on your account. Choose a card with a grace period, if you intend to pay off the balance each month and the desire to avoid paying interest charges.
*How does one calculate the charges balance. The average daily balance is calculated by adding up your daily balances and subtracting any payments you made to the account, and then dividing the total by the number of days in the billing cycle. Cash advances and new purchases are usually included. The adjusted daily balance method is not as profitable for creditors because it subtracts payments made during the current cycle, giving you until the end of the billing cycle to pay your balance without some nascent fees daily interest.
*Compare the benefits of the card. If the credit card has an annual fee and a high credit limit low, it may not be worth opening an account. Avoid cards that offer reward points if you do not want or cashing in the points is to pay a fee. Cards with no annual fee and low interest rates are usually a better deal than credit cards for future purchases, discounts and other gadgets.