Choosing the best credit card

Choosing the best credit card depend on your requirement.

• Do you expect to pay your monthly bills in full or just minimum payment?
• Carry over payments for a long term or short term?
• Take cash advance?

Depending on these requirements you make a comparison checklist on different credit card available in the market. Below you will find few checklist, consider the factors which will affect you and choose the best credit card in the market.

Checklist

1. APR for purchases
2. APR for cash advance
3. APR for balance transfer
4. Any annual fees
5. Late payment fees
6. Over the credit limit fees
7. Activation fees
8. Supplementary card fees
9. Card Credit replacement fees
10. Card Credit cancellation fees
11. Credit Shield / Insurance charges (can it be wavered off)
12. Interest calculation method - fixed, variable, reducing
13. Bill generation date. Are there more than one bill generation date and if yes can customer choose his bill date according to his convenience for payment date
14. Payment due date
15. Credit limit - option to increase or decrease limit
16. Supplementary card credit limit - can it be variable
17. Cash Advance limit
18. Bill cycle - single or double - Payment grace period
19. Type of card - travel card, standard, gold, platinum, VIP card etc
20. Offers - air miles, cash back, discount vouchers, movie tickets, VIP lounge facility etc
    

Make a clear comparison on the above card features along with available repayment facilities, customer support services, net banking options and ease of use.

Use your credit cards carefully - Safety Tips

• Always take care of you card, do not leave it unattended anywhere, especially in places like restaurant, taxi, car, shop, party, beach etc.

• Best is to keep your card within your sight during a transaction and ensure you collect it back and place it in your valet.

• Do check your transaction receipt when you sign them and keep the copy safely because in case you require it in future.

• Keep a track of your statement regularly when you use the card, especially after a trip or heavy shopping

• Never give your credit card number to other people or over phone (incoming calls). When you call the credit card company you will have to give details but never give details more than asked.

• Carry only those cards you think you will need when you travel. It is easier to lose them on a trip than at home. Put cards you do not plan to use in a safe deposit box or other safe place while youare gone.

• Keep details like card number,pin number, expire date of your credit cards in a safe place.

• Also carry credit card company's call centre number and address to report a lost or stolen card credit.

• Cut up cards you no longer use into little pieces. Never throw a card credit or mail it to the company

Do I need another Credit Card?

Nowadays people have more credit cards, each member in family has multiple cards. It’s because credit card has become a common way of bill payment for the items.

But is it good to have many credit cards? Would have control over your credits?

The best solution for this is analysis yourself, budget your spending. There are many advantages of budgeting. Now lets analysis our existing credit cards based on following parameters below:

Card issuer
Network Provider
Annual Fees
Credit Period
Credit Limit
Financial Changes
Balance Transfer Rate
Other fees
Offers
Date of expire
Ease of bill payment
Service

Chart out a table and list all details of your card and select the top three. It’s ideal to have three cards in this highly demanding world. But you should always have total control over your three cards. You should be aware of the due dates and the spending you make through each of the three cards.

The other side if the coin, analysts say you may be tempted to overspend if you have too many cards. You may find it more difficult to keep track of purchases you have made and how much money you have spent when you have several credit cards if you are not organized and budget your finance. Always know your spending and manage repayment properly.

Again, when your credit score is calculated or when debt security ratio is calculated creditors may look at you as a poor credit risk because of the amount of credit you have available. You may not carry large balances (credit limit), but you have the potential to run up large amounts of debt. The more cards you have, the less eager new creditors may be to give you more. So it’s advisable to always keep you credit limit with in your potential. Too much credit limit and a bad repayment track record can damage your credit score. Creditors and Credit card issuers look for your credit score and DSR. If this is not healthy then you have less chance of getting credit.

Do I need a Credit Card?

Many individuals keep away from credits cards because they find it difficult to manage it. They have heard of their friends and relatives getting into debts because of credit cards and some fear the risks involved because of many credit card fraud cases reported. They fear loosing control of their finances. The answer to "Do I need a credit card?" really depend on the current environment or situation a person is. It is important that you learn how to use it the best way so that you get maximum benefit. Lets understand the power of card credit.

• It can be immensely useful in case of emergencies

• Suppose toward the end of the month you have a guest and if you don't have enough money you can depend on your credit card.

• Similarly if your car needs a repair while you are on for a long travel and if repair is expensive, credit card will come to your rescue.

• Few years back when my grand father (he didn't have a health insurance) was seriously ill and hospitalized, the hospital asked me to give a security deposit to start the treatment and at that time I showed them the credit card and they said you can make all payments after treatment. That's the power of credit card.
  
  
• Credit card payments are universally accepted

• You can avoid carrying money and check books around. It is safer to carry a credit card than money around. Now everyone accept credit card.

• Credit cards are welcome every where, supermarkets, grocery stores, shopping malls, restaurants, travel agencies, etc

• Apart from the invoices we get credit bill also and we do have a better control over merchants on an item purchased in case of any disputes.
  Many companies prefer to deal with credit cards because there is no need to handle cash and all its attendant risks.

• Its is a must if you have to do any online purchase.

• For example purchase of flight tickets

• What if you want to do an online course? you will have to make online payment. Almost all purchase through internet require need a credit card. If you have to survive in this new technologically advanced world you need a credit card. So credit card become mandatory.

• Card Credit is a form of personal identity.

• It can be used as alternate proof of personal identity

• People who have credit cards get more privilege in certain places.

• It strengthens your financial capability

• It enhances independence and personal dreams can be fulfilled. You don't need to depend on others for money .

• Keep track of your personal expenses and helps in effective budgeting because your credit card statement helps to identify your spending and you know exactly to which category your money is flowing. Hence you can have better control.

• If you spend with in your credit limits and repay in full within grace period (usually 25-35 days) then you will not incur any interest. If you regularly follow the rule you can save lot of money. Money in your account will get additional days to earn more interest until it is used to pay off the credit card bill. Further you will qualify for attractive credit card offers
  If you maintain a healthy credit score you are eligible for long term and short term loans at special low interest rates.

Further, as I said for different people requirements will be different. If you choose the best credit card that meets your requirement I am sure that you will be in a better financial position. Please note one card may be best for a middle class family but it may not be the best for a business person because requirements and priorities are different. Even their money management methods and budgeting will vary because their vision will be different.