Two Things You Have to Watch When Applying for a New Credit Card
152,246 viewsA credit card can be a useful bit of plastic to hold. To get the best out of yours, however, you’ll need to be informed of the terms and conditions that come with it. Before you apply for a new card, make certain you have a decisive comprehension of what you’re signing up for. Here are 5 common terms to look for on credit card applications.
Annual Percentage Rate of the Credit Card
Often appearing on the credit card application as APR, the annual percentage rate refers to the cash value of credit. In different words, the APR represents the stake you will need to pay on any outstanding balances you have on the credit card. It is expressed as a yearly rate. Several credit cards advertise a cheap interest rate. Others, in particular those that give reward programs, may ask for a higher APR. Ponder over your priorities and whether or not you will hold a balance as you stare at the APR.
Balance Transfer of the candidate credit card
If a credit card application offers the option of a balance transfer, it means that you can take over an existing balance from a distinct card. Why would you want to do this? You may be carrying a balance on a card that has a expensive APR. By switching the balance to a card with a low APR, you could retain a good deal of capital in interest. Credit cards that give a balance transfer commonly encompass a definite time interval in the middle of which no interest will be charged to the balance. Confirm to see how long the bid lasts, and pay off the balance in the middle of the allowed time. You will collect a bundle in interest fees.