Are you looking for the best credit card? Many tend to forget that a credit card is designed to help you in emergencies where you need a little extra credit. Before you start looking for the best credit card, there are 4 things you should be aware of.
1) Interest-free period
Most credit cards will have an interest-free period of up to 45 days. This means that if you repay the outstanding amount within this period, you will incur no interest costs, in other words, it is possible to borrow money for free. If you only pay the minimum amount, it will quickly become expensive as the annual interest expense on a credit card can be as high as 30%. It is therefore important that you repay as much as possible when you have the opportunity to avoid unnecessary interest expense. Borrowing requires self-discipline. Do you have it?
2) Read between the lines
Finding the best credit card is no easy matter and it can be easy to forget when you are tempted with a variety of different offers such as cash back, discounts and other benefits. Everything you need to know about a credit card you will find by reading the loan document carefully. Take some time and make sure you check the terms and conditions carefully.
3) Do not focus on bonus points
The primary reason for obtaining a credit card should be because you want to secure yourself in case of emergencies. If you only want a credit card because you get bonus points every time you buy something then you should reassess your motives. A credit card can quickly become expensive if you are unable to service it properly and bonus points in themselves should not be the primary reason. Expenditure on purpose.
4) Sensitive information
You've probably heard it countless times, but now you hear it again. Do not send sensitive information via email. Email accounts are being hacked all the time and there is no reason why you should get away. If you have sent sensitive information through your account then you should delete all tracks immediately and change your password. Furthermore, you may also want to check your bank statement to be on the safe side.
At the end of the day, a credit card is a convenient way to insure in case you need some extra cash. Just make sure you avoid the most common mistakes. Do you have any other things that you should avoid before you start looking for the best credit card ? Feel free to join us in the comments!