So, finally decided to get a new credit card ha? Well, it is quite normal to catch the worried look when going through piles of credit card offers. Some credit cards offer deals that are too good to be true while some of them may barely meet your expectations. The devil is in the details. Compare the credit card offers on various parameters to choose the one that works best for you. Here’s a list of criteria that you must consider before selecting a credit card:

Interest Rates
Credit card offers boast of lucrative introductory terms such as 0% interest rates for the first six months but you need to check carefully. The 0% may turn into something huge, which could drag you into deeper debt. You must select the credit card that has the lowest interest rate and minimum strings attached. Also, if the interest rate is low, check whether the rate is fixed or variable. Prefer a fixed rate to a variable one as the variable rate may change without any prior notification.

Fees
Credit card issuers have borne stupendous losses in the past year, which they are adamant to recover. So, when you choose your credit card, find out the annual fees, late payment fees, and over limit fees. Other fees such balance transfer fees or account closure fees can dent your finances when you plan to get another card. Therefore, you must carefully consider such type of fees.

Credit limit
Credit limit is the third most important thing that you need to look at when evaluating a credit card offer. The card with a higher credit limit can help you increase your credit score but you must watch out in case you have the temptation of overspending. Take the credit card that offers you with a credit limit that you require.

Interest free provision details
Credit card companies may shower you with interest free grace periods and late payments but examine the fine print. If you are not sure about any policy related to the offer, call up the customer care department and ask for the details.

Thus, always be cautious and carefully look at the details when selecting your credit card. They can work as a tool to raise your credit and act as a great utility if you use them wisely.


Source: Money Matters