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It is not easy to select the right credit card. These cards work like a double edged sword; they can be a valuable tool but they are also likely to inflict serious damage when they are not used judiciously. The first thing that matters when you want to select credit cards is the rate of interest you have to pay to the credit card company. If you have the habit of settling your credit card dues in full every month, the interest rate will then not matter in the long run.Victorian Credit Card Guide will help you choose the best credit card.
An important factor as per the Victorian Credit Card Guide is the way you are going to spend once you get the credit card. It depends on whether you are the type of person who will settle your credit card dues on time, every month or you are the type of person who likes to carry some balance forward every month. It also depends on whether you are going to use the credit card to pay for every small thing or keep it only for emergencies. When you keep carrying the balance forward, then you have to look for the lowest interest rate possible and you also have to search for a low rate of introduction. You have to look for a credit card that offers you a generous limit with a decent rewards or incentive program.
If the credit card is intended for use only in emergencies, then you should be looking for a card with a lower interest rate that has no frills attached. There are many credit card companies offering you their products out there. The annual percentage rate of a credit card could be a fixed or a variable one and it is linked with other financial indicators such as the prime rate.
When you have a credit card with a fixed rate, you will be certain of the interest rate every month. Credit cards with variable rates may fluctuate. The next important factor shown in the Victorian Credit card Guide is the credit limit. This is the amount that is fixed based on a person’s credit history. You have to understand that credit card companies are looking for new ways to make money out of their clients through fees and penalties. Common charges could be transaction fees for cash advances or balance transfers or for increase of credit limit. There are penalties for paying late and crossing the credit limit.
The Victorian credit card guide will also talk about the method of computing the credit card balance. When balances are carried forward, it has to be noted that a finance charge is calculated. A common method is through the average daily balance. Daily balances are added and then they are divided by number of days is a typical cycle of billing. You have to avoid those credit cards which compute the balance through two billing cycles. It will cost you more money through financing fees.
Several credit card companies provide incentive programs for their clients to motivate them to use the credit card. This could be a decent benefit. You have to look for reward programs which give flexibility in the form of cash back or travel incentives that could be redeemed. You have to be careful about the fine print or the restrictions that are attached to reward programs.
Therefore, it is very important to choose the right credit card and make sure that you use the credit card safely and wisely. Victorian credit card guide for selecting the right credit card will come in handy as it will outline various important factors before you choose a credit card.