Choosing a Credit Card is easier when you are informed and confident
If you've completed steps one and two, you now have a select short-list of excellent credit cards that meet your personal needs.
You know what you need and what credit cards meet those needs, but you still have to decide where you'll acquire the card, and who from. If you do have a couple of credit cards on a final short-list, you'll want to do some additional comparison shopping, so you can find the best deal. You also need to know what kind of final checks to make, and what questions you should ask before you sign on the dotted line.
We now have a number of choices when it comes to choosing credit cards. These can be broken down into two major options - in person or by remote purchase. Some people aren't comfortable with remote purchase options such as acting in response to a mail offer, over the internet or the telephone, and prefer to deal in person with an actual financial institution, either a department that specializes in credit and lending or through their local bank branch.
Remote Purchase:
- Mail - Regular advertisement, special offer
- Internet
- Telephone
In Person:
- Specialist - Borrowing and Loans or Credit department
- Local Branch - Bank or other Financial Institution
Each option has different advantages and disadvantages, and these may be influenced by your individual taste and previous experience. Knowledgeable finance advisors can be invaluable if you are still unsure about whether to get a standard, pre-paid or premium credit card.
Tip: Don't settle for the first card that seems to meets your basic requirements. Many credit card providers and companies have hidden surcharges and monthly costs for limited use or emergency requirements. Check carefully.
Buying online can give you excellent opportunities to shop around and compare interest rates and extras - the major disadvantage is that you can't always query all the terms and conditions before you choose. Carefully weigh up the pros and cons to determine which option is most suitable for you.
Tip: Remember, regardless of how a credit card is offered, if a deal sounds too good to be true then it probably is.
Choosing a Card Provider
Many factors have an influence when deciding where to get a credit card, and these need to be weighed up; you may have a tight budget, in which case the card providers who offer the lowest interest rates will be most attractive to you. Alternatively, you may prefer to deal with a card provider who has excellent customer service and employs knowledgeable, friendly and helpful staff. The major factors that need to be considered are presented below:
Choosing a Provider Checklist
- Reputation - time established, fair dealing, complaints record, good name, reviews
- Interest rate - fixed, variable, interest-free periods
- Sweeteners - some providers are more likely to add offers to 'sweeten' the deal, such as waived fees
- Extras - check what incentives or extras are offered with the card
- Support - lost or stolen card service, troubleshooting and advice
Other considerations:
- Where possible look for members of professional associations or bodies
- A prior relationship with a financial institution can be a big advantage
Once you have factored in all these different considerations, choosing who to go with often comes down simply to your personal preference. It is important to sign with a reputable, reliable card provider, as this offers you the most protection if something goes wrong with the credit card.
Tip: Online forums, blogs and review sites are excellent sources for finding out a card providers reputation for good service and fair dealing.
Signing Up
There is often little to choose from between cards and providers, and small things can make a real difference to your pocket and the satisfaction you gain from the use of the card. It's a good idea to anticipate any issues associated with your choice that might arise either immediately after signing up for the credit card, or in the months and years you will be using - and benefiting from - the card.
Many of these issues will only become significant if there is some kind of problem, but it's a good idea to investigate before you make your final choice. Ask the seller about interest rates and fees, as these can vary between providers. Other factors to consider include the repayment schedule and the implications of limit increases.
Tip: Even if you can't imagine calling on a guarantee, or having your credit card insured, do ask the provider about their policies; it's always better to have all the information.
Choosing a credit card can be an interesting experience. Once you've worked your way through all three steps of the
Buyz123 three step guide you will eb able to identify exactly the right credit card for your needs.
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