We all love our cashless plastic cards! Afterall, with just a swipe of the wrist, we are proud owners of our latest acquisition!
On top of that when it comes along with perks such as free movies or discounts on dining. But are you really selecting the right credit card? Have you often second guessed after applying for a card or worse, apply for all the cards in the market.
Ponder over these pointers before committing yourself to that card or cards.
1) Nothing is really free.
Be clear about this: That there is no such thing as ‘free’ gifts. These free things that are said to be given to you usually come with a price. Always read the fine print and understand the minimum expenditure within a stipulated period of time. Think twice before chalking up unnecessary bills (or worse – debt) for that freebie. It's never fun to read terms and conditions but always, always understand what you need to spend on before getting your ‘free gifts’.
2) The Annual Fees
Some cards come with a hefty annual fee. For example, a gold card's annual fee is more expensive than a classic one and a premier card could cost you more than both of it combine. However, there are many promotions where a credit card comes with an annual fee waiver upon application or if you spend a miminum amount within a stipulated time (read point 1).
You could also try calling up the bank ,that you are interested in and ask about their cards annual fee. Plus, it worth a try to ask (really nicely, of course!) if they would waive annual fees. Check out credit cards from HSBC and Public Bank, they do have cards that come without an annual fee!
3) Air miles
If you are a frequent traveller with a frequent flyer accounts, then a plastic that provides you airmiles for your next dream holiday would be right up your alley. When you are looking for a card with air miles point be sure to check the miles reward system. Some credit cards have pretty good air miles rewards but some will only transfer the points at a higher rate. A dollar for a mile vs a dollar for 1.2 miles, which is better? Seriously, it’s not rocket science.
4) Late fee Charges
Uh-oh, life has taken a toll on you and a bill is forgotten, but it’s really not the bank’s job to be your financial nanny. A late fee charge is one debt you must avoid incurring. Check the terms and rates, which can change at the bank’s discretion. Late fee charges are something you need to avoid. Not only that, did you know there , interest charges are incurred which make it a really hefty amount! ( Look out for our next blog post on how late and interest charges are calculated!)
5) Too much Cards
Don't get caught in the trap of having a million credit cards! While having so many cards gives you a greater credit line but also multiple due dates. A the same time, spreading out all your spending on so many cards may not necessarily help you consolidate reward points or benefits. Plus , too much credit may get you in to a debt if you are not discipline.
6) Go GoBear
It's time consuming and frankly, could be super overwhelming for a first timer. Spare yourself the agony of going through boring brochure-talk. Just GoBear! . We list out cards that work harder according to your needs. Just key in your spending habits, salary and ideal reward outcomes, and you’re ready to compare all the benefits.
It's comparison made easy!