FINANCE GUIDE

  
Guide To Finding Top Credit Cards

Credit cards will be an excellent addition to any individual, and it will prove to be a handy tool when one uses it correctly, but you might also be in for horrendous damage when you misuse the credit card. One thus has to ensure that they make the right choice when finding a credit card and also follow the safety rules to avoid incurring any damages. Here are some things for one to check when finding top credit cards.

The first question when one is finding top credit cards at Bonsai Finance ought to be your spending habits. It is your needs that should guide you when selecting the best credit cards. Two types of spending habits are common. Some individuals will ensure that they pay the card every month without fail, while others will always carry a balance from month to month. Some individuals prefer to use the credit cards to cater for emergencies only, while others prefer to pay almost everything using the card. If one pays the bill entirely at the end of every month, there is the need to go for a card that has no annual fee and also comes with a more extended grace period to ensure that you do not get hit with a financial charge.

If you anticipate carrying balances at the end of every month, there is the need to go for a card with a favorable interest rate as well as low introductory rate. One using their card to pay for most of their needs, they should check a credit card that has a generous credit limit and substantial rewards, but when you use the card for emergencies only, settle for a credit card that has low-interest rates and low fees. To read more about the benefits of finance, go to http://www.encyclopedia.com/finance/finance-and-accounting-magazines/personal-financial-planning .

The interest rate will always be a worry for every individual who seeks a credit card, where the rate will be presented as APR. The annual percentage rate can be variable or fixed. The fixed APR means that the rate will be known for every month since it is constant but the variable interest rate will fluctuate. The fixed rate will only change if you pay your card late, or when one spends beyond their limit.

One should also pay attention to the loan limit which defines that amount of money that the credit card provider wants you to spend. The credit limit will mainly depend on your credit history. Read more info .