If we go to a grocery store or a small cafe and see a payment machine for credit and debit cards, it is a common thing. Several companies that provide card machine for small business help credit and debit card users become cashless societies. Yes, if you don’t have a credit card, you will look old-fashioned. Make a credit card so that your wallet has more space and no need to keep your penny in your pocket. Before that, you must pay attention to several factors below so that you do not go wrong:
1. Interest Rates
This factor is the most important thing to consider because it will greatly affect your spending later. A good credit card certainly offers an interest rate that is not too high. Although it is relatively low, don’t forget to pay attention to the provisions, whether the low-interest rate applies throughout the year, or only for certain periods or transactions. Remember, something beautiful can be a trap.
Because it is very important to read the applicable provisions related to the credit card. After all, it looks like credit card interest is always higher. So, be careful before signing a credit card contract.
2. Billing Period and Free Period (Grace Period)
Credit card users must know well the credit card billing period. What date does the billing period expire, i.e. the date on which you have to pay the bill? If a credit card has an interest-free period (grace period) of up to 40 days, it does not mean that you have 40 interest-free days after the transaction date, but rather that the billing period is 40 days. So if you buy something and 2 days before the end of the 40-day billing period, then you only have 2 interest-free days. If you don’t pay it in 2 days, then you will be charged interest on the transaction.
Thus, a good credit card is a credit card that has a longer grace period. But that will not be very meaningful if you do not pay attention to the billing cycle and when you should trade so as not to be exposed to excessive interest charges.
3. Card Fees
Many credit cards charge an annual fee to their customers. Of course, this is not a big problem as long as you can pay for it, and more importantly: you get commensurate benefits. For example, a credit card that offers a lot of points for travel by airplane can charge higher annual fees. However, this credit card can help you save money if you travel by plane.
Compare the annual fee for several credit cards. However, also pay attention to the offer of free annual credit cards because this type of credit card will usually charge a higher interest rate.