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Get the options you need, applying for a credit card.

Applying for a credit card can be not easy, if you don't know, what options to choose. To help you, we will try to guide you through that. First of all, you need to think, what its you goal of getting a credit card? What you gonna use it for? Try to answer this question and based on that, use the following guide.

One of the incentives is weather to choose a fixed rate or a variable rate. A fixed interest rate is very good option. A fixed rate will not change no matter what happens with current economical situation in the coutry. A fixed rate card will protect your personal budget from surprises of paying higher APR from one month to another. Unfortunately, there are not many companies offering fixed interest on cards now. But still there are some.

A variable rate can change from time to time. If the economy goes down, your credit card rate goes up. If the lender need to borrow money from the government and they are charged a higer interest rate, that will absolutely affect your APR too. This options is less recommended, you you have a chance to get around it. One thing you have to be careful of is surprise monthly payments. If you go out and go on a spending spree and are not able to pay off the credit card in one month then the interest charges are applied and your monthly payments can soar like a rocket.

Another feature that companies are offering now is balance transfer. This is where you can use one credit card to pay off the other. The only problem with this is that the debt doesn’t go away it is still there just on another card. These incentives are usually offered to new customers and have a limited time they also come with an introductory interest rate offer. Once the introductory period has passed, you are charged interest on the amount you transferred until you pay it off. The only way this option could work well is if you pay off the debt during the introductory period or before the higher interest rate applies to your transfer. Other than that this option is not a good idea. One major disadvantage to transferring from one card to another is now since the debt has been transferred you now have a credit card with all your credit available and this tends to be an invitation for people to go shopping again and charging up the card that was paid off, this creating two cards with debt.

While transferring debt from one card to another, you should pay attention to the “transferring fee”. It means that, to take advantage of low introductory rate, like 0% for 6 or 12 months, you will be forced to pay 3% of the transferring amount, but usually not more than 100$. Also, pay attention to annual fee. It can be free for the first year, but then you could end up paying from 20 to 150 dollars a year.

It today's society you need to have a credit card in your wallet. Banks are making them look more exciting by offering things like the option of a fixed and variable rate and balance transfer options. The only way that a creditcard will not be your worse nightmare is if you keep track of your spending and pay them off every month. Otherwise when you transfer money it may seem like a good idea but if you do not pay it off before the introductory time period you most likely will never pay it off. Opting for a variable percentage rate can be good if the economy is in good shape but when it takes a turn for the worse so will your bill. A fixed rate card is the best way to go because you will pay the same every month if you can’t pay it off every month.

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