Things To Consider Prior To Applying Or Using A Debit Or A Credit Card

by VAISHNAV KUMAR Online Marketing Expert

If you have gone through the pros and cons of using a debit or Credit Card, and you are all set to choose or apply for any one of them, then just take a little more time out of your busy schedule and catch a glimpse of some information that can help you to make a wise decision. Before making any move it is always advisable to find out all the facts about that move, especially when it affects your fiscal position.

What to look before making your application

If you are determined to apply for a Credit Card, then there are a few considerations that you should keep in mind. These include:

· Check out the rate of interest, duration of the rate, and nature of the interest, means whether it is variable of fixed. This will save you from unexpected rise in interest rates, as a number of companies charge lower rates in the beginning but then raise it all of a sudden.

· You should keep an eye on the annual fees along with the interest rates, as this can accumulate to be a bigger amount and can make paying off your debt even harder.

· It is also prudent to find your credit limit, especially if you are going to use it to pay off all your expenditure including utility bills and other expenses. For adjusting more expenses you will need a higher credit limit.

· Read all that is included in the fine print. This actually applies to both Debit Card and Credit Card. It is always better to go through the fine print before choosing any of the payment modes. This will help you to stay away from any unexpected losses.

· Another point to remember while applying for a Credit Card is to pick one that offers you a longer grace period. A Credit Card with more grace period is better than those that start charging you immediately after making a purchase.

What to keep in mind before picking or using a debit card

Even if you are going to apply for a Debit Card, there are a few points that you should keep in mind. These are:

· It is always important to check the type of Debit Card you are applying for. Some of these are dual purpose cards. This means that these can be used as a Credit Card as well. However, if you use it in the other way, then you will have to pay higher interests.

· Nowadays, you can come across a Debit Card that needs no signature or pin while making purchases. In case, you have any kind of doubt regarding this type of card or transactions you make by using it, you should ask the issuer of the card about the merchants, which use the new method of making transactions.

· Make sure that you look for charge-backs. When you buy something with your Debit Card, and the transaction fails somehow, you can ask for a chargeback of the money deducted from your account.

Keeping these points in mind will help you choose the right Credit Card or use your Debit Card wisely so as to keep your finances intact.

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