A modern credit card provides the owner with virtually unlimited opportunities to pay bills, loans, and pay for services and goods. This is quite a popular product, so it is not surprising that the market presents hundreds of different offers from banks, each with its advantages. We propose to consider Best 0% APR credit cards. Let’s consider how not to get lost among hundreds of offers and choose a profitable credit card.
Lending limit
One of the most important factors to pay attention to in the first place. The lending limit is determined by the banking organization individually for each client. Some banks may refuse to open a lending limit even for a small amount for those who have just started using the product. Get information about the available lending limit when contacting a bank branch.
In most cases, the more reliable and stable the client, the higher the credit limit. Banks willingly open lending limits for the familiar existing customers. It is not uncommon for a bank to independently open a credit limit, provided that the client has a steady income. If the initial limit is small, do not worry about it. The bank can increase it after a few months if it sees that you actively use the card and always pay off debts on time.
Grace period
The period during which you can use your credit funds for free or for a symbolic amount (for example, at 0.01% per annum). There is no single grace period; each credit organization sets it individually.
For example, some banks may offer a 55-day grace period for users of a certain card type, while this period may be different for other types of credit cards. Decide how often you will use credit funds and how soon you can pay off the debt.
Late payment penalties
If the client used credit funds but could not pay off the debt on time, the bank will charge penalty interest on the balance of the debt. On average, this figure is 3-5%. Each bank has its requirements for penalties and interest charges on the debit balance. Pay attention to how much this penalty is, read the terms and periodicity of its charging.
Commissions
Some banks may charge a commission for financial transactions with a credit card. For example, you may be charged a commission if you withdraw cash from an ATM. These commissions may be fixed or based on the amount you withdraw. Some banks do not charge a commission for withdrawing cash from any ATMs. This service is usually available to holders of certain types of cards. Ask the bank’s employee about this nuance to choose an appropriate card.
Replenishment of the account
For some users, replenishment options may decide when choosing a credit card. Some banks perform this operation instantly, while others take 1-5 days to process the payment. Much also depends on the replenishment method.
For example, a card-to-card transfer from one bank to another will take less time than replenishing a credit card account through an electronic payment system. Be sure to check this with the staff at your nearest bank branch, considering the methods you will use to replenish your account.
VISA or MasterCard
For the client, it doesn’t matter which card of which payment system will be used, VISA or MasterCard. Service commissions and financial transactions depend on the specific bank. The difference lies in the loyalty programs used. VISA often conducts various lotteries provides discounts on groups of goods. MasterCard implements a system of bonus accruals, which can be exchanged for some goods after reaching a certain amount. Decide which option suits you best.
Cashback
If the card participates in the cashback system, you can receive a portion of your money on goods and services. Terms for a partial refund of savings may vary. Each bank sets its own rules. This offer is valid for payments at partners of the bank. Cashback is an important factor in choosing a credit card if you often make purchases with the card. Although the compensation is small, it is a very significant advantage.
Interest on the balance
If you plan to replenish your bank card account frequently, pay attention to whether the service of accruing interest on the account balance is available. Each bank has its interest rate and terms for accruing interest.
For example, some financial institutions require a certain amount of money to be deposited each month, while others prohibit the withdrawal of more than a certain amount per month. Be sure to clarify all the nuances before choosing such a card.
Service fee
Most banks do not charge a fee for using credit cards. The only exceptions are cards with special privileges, which give their owners additional opportunities, such as a higher lending limit, higher interest rates, better cashback terms, etc. Ask a bank employee if money for service will be debited monthly.
