Probably the best payment solution since forever is the credit card. This invention that happened in the 1950s, lead to something that is completely dominating the financial companies’ work. Their clients are so happy that they have the chance to own and work with credit cards.
In general, credit cards bring profit to those that issue them, but users also have great benefits by using them. Yes, they don’t make a profit, but there are other ways to make something beneficial. In this case, the kredittkort is the tool that gives a lot of people the chance to buy something with money they don’t own at the moment.
If you’re about to get your first kredittkort, or you’re thinking about getting another one, then you need to know what features you need to look for. Some features are more important than others, which is why we created a list of things that you must look for.
We’re going to share in this article – five crucial things that you must know when you’re choosing your next credit card. These are the things that every card must have so you can be happy while using them. Not every one of them is the same, but these things are universal. See what they are and make sure you make a great choice.
1. The one that has a low-interest rate
The most important part of every loan or financial activity is the interest rate. Whenever someone gives you a loan, they are going to expect to give them their money back with an interest rate. Consider this as the amount you’re paying for getting the service of borrowing money.
Some will ask for a higher interest rate, while others for a lower one. The higher it is, the more money you’ll lose from getting the service. That’s why it’s crucial to look for an interest rate that is going to be respectable and acceptable. Learn more about interest rates here.
Most credit cards given out to clients come with an average interest rate of around 12%. This is considered normal and acceptable. Some might come with a much lower amount, but others will be available for an interest rate of 25% and above.
This is considered too high. It means that you’ll lose a ton of money if you don’t repay the amount you borrowed or better said – the amount you spent using the credit card. When you use a credit card, you are actually spending someone else’s money, which means that you need to pay interest on every cent you spend.
When you’re looking for a new credit card, make sure you’re given one with a low interest rate as possible. This is going to depend on many factors, such as your credit score, income, etc, but try to do something about it and get a better deal.
2. There is no yearly maintenance fee
When you’re making your choice, ask for a yearly maintenance fee. A lot of financial companies will ask for a fee of a couple of hundred dollars just to keep your account alive. This is the most senseless fee that someone could ever ask from you to pay.
On the other hand, there are tons of those that are not going to ask for anything. There’s no reason to ask for this money, and those that are trying to impose such a payment are just treating their clients poorly. You don’t want to be ripped off – go to those that are not going to ask for anything additional than the money that’s normal to pay in a bank.
3. The rewards are tailored for your needs
A great way to enjoy your credit card is the chance to earn rewards by using it. Almost all of the companies issuing cards are going to provide some kind of game that is going to give you the chance to earn some points by spending that can later be transferred into a valuable asset.
Most companies will provide the cashback option, which is a way for you to get some of the money you spend immediately back. When you go to the grocery store and you spend $100m you might get up to 6% back on the entire amount.
This may not seem like much, but it’s still better than nothing. On a yearly level, you may return a couple of hundred bucks, which can later be used for something you love, or you can use it to cover the expenses you made and return some of the money you borrowed.
There are some other choices too, like the flying miles points, or the hotel points. All cards have different features, and you need to check them out to see which one fits your lifestyle the most. If you’re not traveling anywhere, then you’re not going to find too much use of the one that is focused on miles or hotels.
4. You can pay with it wherever you go
As we just mentioned, there are cards made specifically for those that travel a lot. That means you can use them for buying plane tickets. But, if you get one that is not made for these things, it may mean that you’ll have no use for with whatsoever.
Always look for cards that are going to suit your lifestyle. Don’t think that alle kredittkort is the same. They are not, and you need to find those that will give you the option to pay at places where you go, and not just some places where you never set foot in.
5. The limit is enough for paying some of the stuff you need
When you get the card, you must check out how much money there is on it, and whether you can use it for some needs. Let’s say that you’re about to organize a wedding and you need some $20,000. Finding out that there’s only $15,000 on the card is devastating.
You need it to cover your event, and if there isn’t enough money, then why are you getting it in the first place? Before you acquire anything, you should make sure that you’ve got a high enough limit for the things that you need and plan to do.
If you can’t get what you want, that means you should go elsewhere and look for a kredittkard that will fit your needs. The entire point of applying for one is to have more money to spend whenever you need them. If there’s isn’t enough money on it, then you need to go someplace else and look for better terms.
These are some of the most important issues that you must know before making any choices. There are billions of cards out there and all of them were made for different reasons that people need. Financial institutions understand that their clients have various needs and they try to conform.
However, with so many people out there, it’s impossible to make a pattern for every one of them. You’ll need to meet the banks halfway and find the card that is going to suit you the best. Don’t settle until you find the best.