When it comes to credit cards, consumers are bombarded with several choices from the numerous banks and financial institutions in the market. Through these credit cards, banks allow customers to spend money at free will and repay the amount with certain terms and conditions applied. Credit cards can improve your credit score. The more you purchase, the more rewards and perks you get. Also, banks and lending institutions check credit scores before sanctioning various types of loans and mortgages to customers such as education loans, housing loans, business loans, and so on.

To get the best benefits, it is essential to choose the right credit card. It cannot be an impulsive decision. For this, you need to ask the right type of questions and also inquire with the sales representatives of the card issuing company. Preparing well is a must for negotiations. Here are some questions which will help you to find the right credit card.

• What is the interest rate offered?
  Depending on whether one carries a balance or not, choosing the right interest rate on a credit card is one of the most important aspects. Look for the low-interest rate cards which don’t charge an annual fee. In the introductory period, the card has 0% interest. The interest increases to 13.74% annual rate after the introductory period. However, if one is in debt, then they need to take a credit card which doesn’t charge them interest for a period of two years. It should charge them 3% on an average for transferring a balance from one card to another.

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• What introductory rewards are offered when you choose a credit card?
  This is much like airline miles that one gets when they travel with one particular airline. When one signs up for airline rewards program, a lot of such programs will automatically upload miles in their card or account whenever the card is used.  Credit card companies offer attractive sign-up bonuses, even though these bonuses come with terms and conditions. For example, you will have to spent an ‘X’ amount to avail of a particular reward. You have to decide for yourself what works best for you. Comparing offers from different credit card issuers can help to make this decision.

• What offers are available when you spend with a credit card?
  To answer this, one needs to be able to gauge whether paying annual fees for a credit card is worth it or not. Through no-fee cards, one can get a small percentage of cash back on purchases from partner companies of the bank. It is only advisable to pay fees if you can utilize the rewards to purchase high-end products at low costs or if you avail elite services by paying only with your rewards. Knowing where and how much is needed to be spend is of prime importance as well. Some credit cards are also personalized for the type of product or service, one would wish to purchase.
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