While credit cards have gotten a bad rap over the past decade as a primary source of consumer debt, they are not necessarily the evil they have been chocked up to be. Much like any potentially dangerous tool, how that tool is handled determines the subsequent result of using it. As such, those individuals who use their credit cards responsibly, making their payments on time often have little to no trouble with their credit cards. Unfortunately, many consumers have looked at Credit cards Phoenix as a way to deal with a job loss, utilizing their credit line to pay bills and other expenses that they simply cannot afford to cover on a monthly basis. Obviously, this type of behavior is what has led to the bad reputation surrounding credit cards. By taking the time to carefully choose between the various options available to you, you can open a credit card account and utilize it with great success. Below, we have outlined two of the most important factors in choosing a credit card.
Annual Percentage Rate
The most important element to consider in credit cards, Home Loans or any other sort of credit line is the annual percentage rate, or APR. In short, this is the number that will determine your monthly payments. The higher the APR, the more interest you will pay on the balance of your credit line, causing your monthly payments to increase as a result. A big determinant of the kind of APR you land for a credit card is your credit score. If your credit score is low, then the credit company will feel comfortable giving you a low APR.
Associated Fees
In addition the APR, you also want to take note of the various fees associated with the Credit cards Phoenix that you are considering. Some cards come with no extra fees, while others include annual fees, overdraft fees and late payment fees. Weigh your options before committing to anything, ensuring you are aware of all of the included fees with your Credit cards Phoenix.
In all, a credit line is a fun way to get the items that you want now, but would otherwise be unable to afford. However, they must be used responsibly. Consider the above elements when choosing a credit card to land an option that best suits your financial situation.
