Your credit card collection can either improve your credit or contribute to the debt. When choosing a new credit card, take the time to research your options. Many credit card companies prey on individuals with poor credit, charging high annual fees and setting high-interest rates.
Look for a credit card company that offers beneficial incentives to clients. You may enjoy travel points, cashback rewards, and bonus features. Instead of going into debt with a credit card, you can save money and raise your credit score.
Minimal Fees
Some credit cards charge annual fees just to remain a customer. These fees can range from about $95- $500! This adds a new expense to your budget. Most credit card companies also charge late fees, over-limit fees, and interest. Read through the literature or website before committing to a credit card application.
If you have good credit, you should never pay an annual fee for a credit card. You can avoid late fees and over-limit fees by keeping your balance low and paying the bill on time.
Competitive Interest Rates
While credit card companies don’t control interest increases due to market changes, many start with incredibly high-interest rates. Only customers with a low credit score should need to apply for cards with high-interest rates.
As your credit improves, so should your credit card choices. Look at different cards to compare rates and features. If you keep the balance on your card paid down, you can avoid monthly interest charges, as well.
Rewards and Bonus Features
Credit card companies offer a variety of rewards to catch the interest of potential clients. Choose a card with rewards you plan to actually use. The Chase Freedom Flex card offers free cell phone insurance to cardholders. This bonus can save you money, as you won’t need to pay for insurance through your cell phone company. Every credit card has unique bonus features. Find one that fits your lifestyle.
You can also find credit cards with cashback options and travel points. You may get cashback for shopping at specific retailers for certain products. Travel points may accumulate with each purchase you make. These points can often help you pay for airfare, hotels, and rental cars.
Some other popular rewards include vouchers for dining and entertainment venues. If you refer friends or family, some credit cards also give you a cash reward when they get approved for a new credit card.
Stop looking at a credit card as a financial burden. Sure, it’s good to have a credit card for emergencies, but you can get so much more from a good credit card company. When you use a credit card responsibly, you can improve your credit and save money with rewards.
Take the time to read through the details before applying for a new credit card. Look for one that comes with rewards and bonuses that you can get excited about. With the right card, you can look forward to features such as cashback, bonuses, and travel points.
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