Getting into the market for a credit card means needing to break out the magnifying glass and prepare yourself to do some thorough research. There are a lot of aspects of every single credit card available right now that are each incredibly important to ensure you are both getting the best value for your account as well as taking on an account that you can reasonably maintain with your income. Checking the areas mentioned in this article can help you avoid biting off more credit than you can chew, and ways to utilize your new credit card once you’ve been approved.
Loans versus Credit Cards
The primary difference between a loan and a credit card is that a loan is typically a one-time payment, usually in a lump sum, due to be paid back at a predetermined date, whereas credit cards offer a flow of money for you to use for a number of things at your discretion, with monthly payments due based on your outstanding balance to maintain access to your funds. Just like loans, however, credit cards do have limits, and that is one of the things to consider when you start your search.
Limits on credit cards are typically based on a few different things, like what their intended uses are and what type of person would be attracted to them for those uses. For example, a credit card that offers special discounts that pair well with the needs of a specific type of business, it may be a business expense-specific card. This allows for exclusive partnerships with companies for things like discounts or loyalty rewards for returning customers.
Your available credit is whatever credit is not and has not yet been used for another purchase, not to be confused with your balance, which is how much is outstanding and due to be paid. This includes the APR, the annual percentage rate, which is essentially what you are being charged for borrowing the money you spend with your credit card. APR can vary greatly from one card to another, so be very careful reviewing any card offer of what to expect.
Late fees are one of many fees you can find attached to a credit card agreement, so you see why research is important. You incur late fees when your payment due date is missed, some credit cards come with a few days of grace period for this payment, but if you completely miss one you can be charged for it. Transfer fees come into play when you need to move money from one account to another in relation to your credit card, usually as a way to discourage abuse of the system to commit fraud. There are also cash advance fees that are applied when you take money off of your credit card to cover cash-only needs, this is a sort of convenience charge. Some cards offer cash back on a percentage of all purchases, though, which might be something to look for when you start comparing Kredittkort info.
How credit cards can best help your situation
Building your credit score with a card that was chosen with your finances in mind means you’ll have a healthy credit history to show when you look to make bigger purchases or want to establish trust in a new business venture. By making your payments on or before the due dates, depending on your agreement, you have clear documentation of your financial responsibility, which reflects well on you for potential partnerships, job opportunities, and future lenders.
Many cards offer some kind of loyalty reward program to encourage different demographics to their various types of cards available. Travel reward points, helping with ticket prices, bag fees, fuel costs, or rideshare services, can greatly benefit a business that frequently is sending employees all over the country or the world to operate. On the other hand, some cards offer cash back on buying groceries from certain stores, which adults young and old, with or without families, can make great use of for other expenses.
Options at your fingertips
What makes finding the right credit card for you a fantastic feeling is the freedoms it opens up for you. Whatever projects you’ve had planned, or the growing list of things you’ve been putting off buying for yourself or your family because the money wasn’t available, you can finally get started on it.
Is your car in dire need of some attention? It might only need a better stereo, or maybe you don’t actually need anything done to it, but you’d really like to spruce it up with a paint job, either way, you can actually afford it with a credit card. Rather than digging deep into your pockets or emptying your savings account, you can make monthly payments on the card account while still being able to enjoy the finished product.
You can also cover travel or work expenses, or unexpected medical bills with your credit card. Supplies for your business or start-up, medical tests, or treatments not covered by your insurance. This also includes medical debts for your fur children. If you have pets then you know they manage to get into the weirdest of situations, eating and chewing and getting stuck in all manner of things. Having an up-to-date credit card can help you rest assured you can get help, get supplies, or go wherever you need to when you need to.
Something you might not have considered is using a credit card to begin your fitness journey, or feed your DIY hobby. Turn your garage or shed into a gym or craft room so you can keep yourself to your next New Year’s resolution. Buying home gym equipment is nothing to shake a stick at, fitness equipment is heavy and expensive, but a wise investment for the health-minded. Having a fully stocked crafting room can save you quite a bit of hair-pulling, keeping everything at your fingertips and well organized so you can complete your crafts in no time with ease.