If you’re planning on applying for a credit card with your bank or
credit union, there are a few things that you should consider first. You can quickly
get in over your head with credit card debt, and the situation will be
even worse if you chose the wrong credit card company. Here are some of
the most important factors to consider when you’re choosing a credit card.
The Credit Card’s Interest Rate
Credit card companies offer varying interest rates to customers, depending
upon their credit ratings. Your interest rate might be a fixed rate, meaning
it is the same from month to month, or it might be a variable rate that
fluctuates based upon the federal funds rate or prime rate. Credit unions
often offer the most competitive interest rates for credit cards,
auto loans, and home mortgage loans.
The Credit Card’s Fees and Penalties
Your credit card company can also charge you fees and penalties in addition
to monthly interest. It’s important to have a very clear understanding
of these fees and when they will be implemented before you enter into
a credit card contract. Your credit card company may charge you fees for
balance transfers, cash advances, late payments, going over your credit
limit, paying via phone, or requesting a higher credit limit.
Your Personal Spending Habits
Finally, you should consider your own personal spending habits before choosing
a credit card. If you plan on paying off the balance of the card every
month, the interest rate won’t matter to you as much. If you plan
on using the card frequently and paying the minimum amount every month,
you’ll want a card with a low interest rate, a high credit limit,
and a customer rewards program.
At GCS Credit Union, we offer a
Visa rewards credit card in O’Fallon with competitive interest rates and low fees. Our credit union also offers
great rates on personal loans, lines of credit, auto loans, and home mortgage
loans. To learn more about our banking services, call us today at (618) 797-7993.