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Factors to Consider When Applying For a Credit Card

The trends and advancements in the technology levels have made man divert from analog ways of carrying out activities into a more convenient digital method. The methods of making payment have faced a remarkable growth since the era where barter trade was used to carry out the trade. A credit card is a type of card that helps you make payment electronically thus saving you the need to always carry money around when you want to make some purchases. This form of payment has many benefits when compared to cash payments due to its convenience nature of use and flexibility. There are several banks that offer these credit cards in the market but come to differ in its use and For example in Singapore, there are numerous card deals on offer by multiple bank providers such as Citibank credit card that can help you pay for goods and services. However before taking a credit card from a given bank, it is important that you consider some factors that you can learn more here on this page.

You should get to know what the bank that you intend to take the credit card from is charging you as interest on the credit card. On a credit card the interest rate tend to be calculated on an annual percentage basis where it can be either fixed or variable rate where it can be tied down to another financial indicator. The two differ in terms of variability. Make sure you know the interest rate of the bank before taking the credit card.

Establish the credit limit that the bank is giving you. The credit limit can be defined as the amount that the card issuer which in this case is the bank, is willing to let you borrow from them. This can be attributed to a number of factors which include your credit history thus making it vary from person to person. It is good to have a credit card that does not limit you the way you handle your activities. You should have some information on the maximum amount that the bank gives you as credit.

Consider checking the fees and penalties attached to you taking the credit card. Calculate all the necessary costs that may be related to you being a credit card holder of a particular bank. They can help you in determining the service charge of the credit card. Discover more on the penalties that you are likely to be charged once you do a mistake. You should seek to look for a bank that is offering reasonable fees.

Consider the balance computation method that is used by the bank on your credit card. Dig deep in order to reveal the methodology used to get your financial charges on your credit card. This is one of the most used methods of calculating the balances of your credit card employed by most banks that issue credit cards. Banks that tend to charge you twice should be completely be avoided at all cost.

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Author: celine