Figuring Out Finances


Considerations to Make Should Make When Taking a Credit Card

There have been revolutionized in the mode of living of man and the payment sector has not been left out. In the past days, barter trade was the recognized method of payment where it was replaced by the use of cash. This is a new method of handling payments that have been invented to replace the need to always carry cash around when you are in need of some goods and services. This form of payment has many benefits when compared to cash payments due to its convenience nature of use and flexibility. There are several banks that offer these credit cards in the market but come to differ in its use and For example in Singapore, there are numerous card deals on offer by multiple bank providers such as Citibank credit card that can help you pay for goods and services. See more on the factors that you should consider when taking up a credit card.

You should get to know what the bank that you intend to take the credit card from is charging you as interest on the credit card. The bank can use either the fixed or variable interest rate to determine the interest rate that you have an obligation of paying to the bank. Fixed interest rates are not subject to change unlike in the variable interest rates. Make sure you know the interest rate of the bank before taking the credit card.

Establish the credit limit that the bank is giving you. This is the maximum amount that you can receive as credit from the bank. How well you are rated by the credit control bureaus is used to set your credit limit. You do not want a case where you a close to maxing out your credit limit only after making a few payments. Get to know how the bank rates your credit scores.

Consider checking the fees and penalties attached to you taking the credit card. In this you should seek to establish what the bank is charging as transaction costs such as balance transfers and cash advances or by requesting your credit limit. They can help you in determining the service charge of the credit card. You should also determine the penalty charges that the bank can charge you when you late in paying your bills or when you go above your credit limit. You should seek to look for a bank that is offering reasonable fees.

Consider the balance computation method that is used by the bank on your credit card. Get to know how the issuer get to know the finance charge that you are obligated to pay them. Most banks adopt this method. You should avoid taking a credit card from a bank that computes the balance in two billing cycles and this can wind up costing you more money in the financing fees needed for your credit card.

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