Consider the following things before buying a credit card. First try to analyze your spending habits and intentions to use. If you are a person who pays bills regularly on every month before due date means interest is not very big matter. Look for the credit cards with free of annual fees and for longer grace period so that you don’t have to undergo hard circumstances. Suppose if you are going to carry balance for next month means decide to choose lower interest rate cards.
If you are using the cards in case of emergency situations only means get no frills cards with low fees and low interest rate. If you are using cards often for buying things means get a card with large credit limit and with standard reward programs. In credit card offers the annual percentage rate is appeared as an interest rate.
It may be either fixed rate or variable rate which is tied to other financial indicator (prime rate). You usually know the monthly interest rates for the cards with fixed rate. And card with variable rates have up and down in interest rates. The cards with fixed interest rate can be changed sometimes by paying the fees late or crossing the credit line or the credit card provider decides to change it.
The term credit limit means the amount of money that the card provider allowing you to borrow money from bank. Maintain a good credit history by settling the fees before the due date as possible and not crossing the over credit line. When you fail to maintain good history definitely it will hurt the credit score and some credit card providers will cut the individual credit limits to amount which is lesser than their current balance.
Know the fees charges and calculation of average daily balance
The credit card issuers charges fees for transactions like cash advances and balance transfers or asking the customer to increase the credit limit or any pending payments by phone. The issuer will also put penalties for paying the fees late or crossing the limited credit line. Opt for the cards with acceptable fees. Look for offers that have no transaction fees and 0% interest for at least one year.
Never pay extra money for reward programs. Most of the card issuers will not charge extra amount for this. Learn the balance computation process. Suppose if you are going to carry balance means, you must know how the finance charge been calculated monthly. Learn average daily balance method calculation. The daily balances are added together and divided by no. of days in the bill cycle.
Always stay away and aware of credit credits that calculate the balance amount using 2 billing cycles. This results in costing large amount of money. Some kinds of cards never use this kind of billings. Most card providers offer reward programs in order to attract customer, it’s an added benefit he will not charge amount.
From the wide range of bdo credit card choose the right card that suits you. And earn reward points & enjoy rebates from the Philippines stores. Buy bdo platinum credit card where you will get points for each local and international transactions.
