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What you should know when ordering a credit card

If you are looking for a credit card, there are a few things you should watch out for because they can give you lot’s of extra costs afterwards;

Interest rates: Don’t get tricked by low introductory interest rates that some Credit Card companies promise. After a short initial period, these interest rates are most likely to increase substantially. Only select a Credit Card that will maintain a continuous low interest rate.

High late fees: Always check what the Credit Card’s late fees are and when they will be enforced by the credit card company. It’s no point taking a Credit Card that has the same late fees for someone who is 1 day late compared to someone who is a couple of weeks late. Be sure to also look at the cost of these ‘late fees’.

Low minimum Payments: A high number of the Credit Cards out there offer low monthly payments. This usually means that you will be mainly paying them the accrued interest and very little on the principle balance.

Selling you ‘Theft insurance’: In most cases Credit Card companies will try to convince you that you need a security measure in case your credit card gets stolen. This is what is known as a theft insurance. This should protect you when the thief who took your card, takes your card on a shopping spree. However, even without insurance you will more likely pay less that what you spend in insurance premiums.

Selling you ‘Disability insurance’: This will make sure that, should you ever become disable, the insurance will take care of your credit card minimum payments. Now this is the easy part, the hard part is collecting these minimum payments from the insurance company. If you ever get them to pay, they will be mostly paying with the interests they built up from the premiums you paid them.

Some interesting Credit Card

28 April 2010 2 Comments

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