Today people can drive themselves into debt faster than ever before with credit cards. It seems like it can happen almost overnight too. By the time they know what’s going on; they’re already thousands and sometimes tens of thousands of dollars into debt.
Once in that position, it may take years, even decades to pull out. Some people never become debt free. So if you feel that you absolutely, positively have to slide that plastic, you need to use plastic that offers you the best deals. So here are a few pointers that can help save you in the long-run.
First you should examine all credit card offers available to you. If you have worked to improve credit score, the better credit rating should mean that you benefit from lower interest rates. Some revolving account cards have ridiculously high interest rates. Other cards have annual fees. There is fine print on every credit card application – so beware! You need to examine and compare every offer to know which ones are truly the best deals.
Late fees and over limit fees in particular are very important to understand. They vary from creditor to creditor and can make a huge difference in your monthly budget if not managed correctly. How quickly does one credit card company slap on a fee? How much are the fees? What would you have to do to avoid them? These are all key questions to answer.
Some accounts offer rewards programs. This is very popular today but how important is it to you? Are frequent flyer miles something you can take advantage of? Will you be able to make use of a program that gives you cash back on purchases? Sometimes the different rewards programs look good but when you dig a little deeper you discover they’re difficult to manage and offer little real benefit to the way you live your life.
Zero percent interest credit cards always look like a great deal. But don’t get fooled by this “to good to be true” offer. The zero percent interest will only be in effect for a few months or perhaps the first year. After that, the interest will go up – and it may go up a lot. Make sure when signing up for these cards, the percentage rate is acceptable. Also beware of late payments. Zero percent interest is no good if you get jacked up to twenty nine percent interest because of a single late payment.
Getting into credit card debt can be terrible. To avoid it, use your credit cards wisely but also make sure you use cards that give you the best benefits and features. So take your time. Weigh the pros and cons of each and every credit card offer. Understand the fine print. Then you can make the best choice for you.
