Some people have numerous credit cards, which can complicate record keeping and increase the probability of losing one or more of your cards. You can consolidate your bills by using just one credit card to cover your purchases. If you decide to use only one credit card, the following criteria will help you determine which card is most desirable:
â?¢ Acceptance by merchants: some credit cards are more widely accepted than others. MasterCard and Visa are accepted by more businesses than other credit cards. You should make sure that your card is accepted by the types of merchants where you typically make your purchases.
â?¢ Annual Fee: if you shop around, you can find a credit card that does not charge an annual fee.
â?¢ Interest Rate: the interest rate you are charged when you do not pay the entire credit card balance on time varies among financial institutions that provide financing on credit cards. This factor is especially relevant if you expect that you will rely on the bank to cover your balance in some periods.
â?¢ Maximum Limit: some credit cards allow a higher maximum limit on monthly purchases than others. A very high maximum may not be necessary, and may tempt you to spend excessively. Make sure that the maximum limit is high enough to cover any necessary monthly purchases, but not so high that is encourages you to spend beyond what you can afford.
Author Dave Pritcharddate added 2009-08-25 15:02:11