Three More Things You Need to Know When Applying For a New Credit Card
151,952 viewsThe three more things you need to know when applying for a new credit card are: grace period, introductory offers and Variable vs. Fixed Rate. Of these three the most important is the variable vs. fixed rate factor.
Grace Period of the credit card
The grace period, or free interval, is the number of days that you are granted to pay off a balance without acquiring charged interest. Grace periods as a general rule flow between twenty and thirty days. If you make a purchase, and then pay it off in the middle of the grace interval, you will not owe any finance charges. If your card does not have a grace interval, finance charges will begin to accrue as shortly as you make the purchase.
Introductory Offers of the plastic
Most plastics admit extra bonuses for signing up. These often lie of an initial time interval in the middle of which you will not be charged interest. The offer as a general rule lasts between 6 and 12 months, and can be used toward purchases or balance transfers. Confirm to see what the offer applies to, and what the common interest rate will be. Finally, you will have to pay the normal interest rate on the card.
Variable vs. Fixed Rate
Many credit cards come with a variable interest rate. This is generally connected to the prime rate, which is what banks use to lend to their best customers. As the prime rate shifts, so does the interest on your plastic. A fixed rate, on the other hand, is one that will not shift. The credit card establishment yet has the right, even with a fixed rate, to make adjustments, but they need to let you know ahead they do so.
All of these terms can assist you pick out the right credit card for your circumstances. Take the time to read profoundly the terms on the application. By doing so, you’ll have a full comprehension of your credit card. Once the credit card arrives in the mail, you’ll be prepared to begin using it.