Everyone looking for a credit card wants one with no annual fee, but no one wants a card with high interest rates. Since higher rates go along with credit cards that charge no yearly fees, you should think twice before getting one for yourself. Always remember that credit firms don’t do this for charity. They are in it for the money. The no-annual fee is a mere come-on for you to sign up for an account.
They still have to profit from the deal somehow and they will – at your expense. The card holder, on the other hand, must deliberate matters well and make sure to also benefit from the contract before signing anything.
It is through annual fees, interests on late payments and other charges that creditors make money on. Make certain what your genuine reasons are for getting a credit card. There is no one card that fits all needs. A credit card with no annual fee can definitely be helpful to you as far as your finances go, but so can a credit card with minimal interest rates.
If you are the meticulous kind of person who takes care to pay all your balances in or on time, or you have a low balance on your account, then a credit card with no annual fee will be to your benefit. This kind of card makes up for the loss of an annual fee by attaching higher charges compared to other credit cards. This way, you will be charged lower no matter what the interest rates are as long as your balance is kept low.
That makes it imperative for you to pay off your total balance because if your account has a substantial balance, then interest rates will be higher. If you think you cannot keep up with payments which results in your balance being kept high, a no-annual-fee card will not be a good fit. On the other hand, get a credit card that charges the lowest possible interest rates will be beneficial to you. This way, you will save on cheaper charges that compensate for fees you will have to pay every year.
If you have set your mind on what you need from a credit card, you will not be swayed by hundreds of advertisements that offer astonishingly cheap introductory rates or all sorts of rewards on bonus points and cash backs. If you started out confused, after going through these commercials, these will only add to your confusion. One or two credit cards are usually enough for most people, so the trick is to be able to wade through all those advertisements with a critical and determined eye sorting out the useful from the less than useless.
There is no standard manner on how to do this. It would help a lot if before wading in you have already thoroughly examined your personal spending patterns. Armed with that assessment and information, you will find it easier to calculate and decide what card gives you the best deal.
Companies that offer a card with no annual fee have all sorts of enticements to get you to sign up with them. It could be minimal introductory rates that could go as low as zero percent that allows you to get a loan using your card for a limited time. Or they will try to sway you with bonus points that will earn you rewards like cash backs, grocery goods, free hotel stays, and even airline travel. Just like the basic no yearly charges and low interest, these are bells and whistles. What you the prospective card owner is really after is good and fair service with your card that will go well with your spending and paying habits.