How to choose a credit card

Credit cards have become a part of life for most
people living in the western countries. It’s becoming
increasingly impossible to avoid them, especially for
business men. So if it is the first time you are
seeking to enter into the world of plastic money, here
are some of the basic things you should look out for.

* First, compare the interest chargeable for all the
credit cards for which you are eligible. While the
rate may not remain fixed indefinitely, it's always
advisable for first timers to go for the one charging
lower rates.

* Read the fine print, especially on the other charges
that may be charged on you, like late-payment fees,
annual fees, and whether there is a grace period which
is normally given before the finance charges kick in.

* Decide what limit is appropriate for a person of
your income. Also the fewer credit cards you have, the
better placed you are to track your spending.

* Compare the services and other features such as the
cash back incentives, or warranties, rebates and the
like.

* Check whether the card is widely accepted to enable
you to pay for your needs.

You will do yourself a favor by familiarizing yourself
with the following terms.

* Annual Percentage Rate. This is the measure of the
yearly cost of credit.

* Finance Charges. These are the total charges
involving the transaction. This is the period the
issuer gives you before he starts charging you
interest on new purchases. Note that not all credit
cards have a grace period.