As many different reports have recently demonstrated, many American households and individuals are still heavily reliant on credit cards. While some are using plastic simply for emergencies or for one off purchases there are others who are using them on a regular basis. While credit cards can provide convenience and ease as well as financial flexibility, experts have warned that those using them need to ensure that they have the right credit card in the first place.
The credit card industry has become extremely competitive, and those who are looking for a card have plenty of choice available particularly if their existing credit score is good. However, there are various things that consumers need to look at in order to ensure they find the right card for their needs.
According to officials, there are a number of key points that have to be considered by those who are trying to find the right credit card for their needs. One of the main ones to look at is the rate of interest charged by the credit card provider – something that is especially important for those who plan to spread the repayments on their credit card balance. Those who plan to pay off the balance in full each month will not be charged interest but may still want to look for a lower rate card just in case they do decide to spread repayments at some point in the future.
Another important thing that consumers need to look at is whether there is any annual fee charged for the credit card. Not all credit cards charge this fee but it can vary among those that do. The interest free period is also important, as this will enable consumers to see how long they have to clear their balance without being hit by interest charges.
Experts have also stressed the important of using a credit card sensibly in order to benefit from the convenience and flexibility without risking spiraling debt or credit score problems. This means paying off as much of the balance as possible each month rather than making just minimum payments – and where possible paying the balance off in full. Users also need to make sure that payments on the card are made on time in order to avoid late payment fees and a black mark on their credit scores.
One official said: “Credit cards are ideal for those who want a financial backup and something they can fall back on in an emergency. They are also great for regular use providing the balance is paid off in full each month, as this means no interest is charged but you still get to enjoy the benefits of having a credit card.”