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The Bottom Line about Credit Cards – What Should You Look For in a Credit Card?

Credit cards are convenient, economical and beneficial financial tools. Being able to pay on time or pay in full is essential for business and personal life. You need to know that many of us are lazy, or make few decisions that result in financial disaster for ourselves or our families. There can be little or lot you can do to improve your credit or your score as it comes into negative aspect in credit card offers.

However, you should choose the right credit card because the best financial benefit to a business is not only the lower interest you may have to pay but the lower cash flow you get from sales and/or commission you are making. Some credit card companies pay a high percentage of interest upfront but when you are offered a credit card with a longer credit term, you need to choose the option to pay off the debt first because once you don’t pay off the credit card itself every other month you will not be able to use it.

Here are some things to consider before applying for a credit card:

Do not let one credit card sit on your shoulders for too long!

This is especially true if you want to get another credit card or even if you have turned down a credit card offer that should have sent chills down the company down the drain. Choosing a credit card that can be taken down at any time while you are paying off the debt will bring you much-needed relief in the long run.

What else is there to say about these things? The only thing more important than knowing the ins and outs of credit cards is knowing the facts first. Before you decide what to apply for a credit card for, you should ask yourself if credit cards are a good deal or not. You might just find a credit card that’s the right answer for you.

The Difference Between Low Fixed Rate Credit Cards and High Rate Credit Cards

The news is confusing. Now you have a chance to choose. After considering all the different types of credit cards out there, here is the main difference between low fixed rate credit cards and high rate credit cards:

Low Fixed Rate Credit Cards – The basic term that credit card companies use to describe any type of low fixed rate rate credit card that has an introductory low fixed rate term. This means the terms are “variable”, such as, 0% for a fixed period, such as 6 months, or a variable rate, such as 1% for a fixed period. Generally, an introductory low fixed rate credit has a low introductory APR of 15.99%, and a variable APR of 17.99%. Low fixed rates are typically for a limited time only as compared to the current low fixed rate.

High Rate Rate Credit Cards – This is the generic term that credit card companies use to describe any type of high rate rate specific credit card that has a standard introductory APR of 17.99%. These cards usually carry variable APR ranges from 12.99%, up to a variable APR of 17.99%. Variable rates typically range from 0.01% – 9.99% upon first occurrence. These are simply introductory rates, so you will not find any surprises in replacing it with a competitive low fixed rate.

Consumers looking for a credit card that will offer attractive introductory APR rates can look out for credit cards that have added many many options, offering rewards, and/or rewards programs. Some of the following:

Cash Advances – These are cards that allow consumers to make certain minimum payments that are equal to or higher than the APR balance prior to interest being charged. Paying off the entire card instead of just the minimum payment will result in you not making payments.

Annual Fees – Common credit cards offer 0% APR balance transfers for as long as 30 days. Before transferring a balance to a new card, consumers should review the APR terms, and weigh each option against the interest charge being collected.

Many other cards offer 0% APR introductory offers on balance transfers only. The customer should be aware that these rates might then continue to accrue interest without a balance transfer but since the finance charge is entirely separate, the consumer is charged interest to keep that balance unpaid.

‘ There is still an application fee. Typically, 0% APR introductory programs apply only to the balance transfer and not to the new card upon the first application obtained. Some issuers charge this for new purchases only.

Any future information, including additional fees, finance charges and interest rates should be sent to the billing address listed for the credit card account by completing and mailing the appropriate supporting documents. Consumers who plan to avail of the introductory rate offers should also check to make sure the interest charges are not disproportionately high.