There are various types of credit cards when you apply for credit card and you are offered one based on your needs and repayment power. Before submitting your credit card application, understanding the credit card features will not only help you choose the best credit card but also enable you to use it wisely. One should be aware of the credit card services before applying for one.

  • Alternative to cash

    Carrying a lot of cash is a cumbersome process. So, credit card is a good alternative to cash. It helps one to shop conveniently without having to carry cash of various denominations.

  • Credit limit

    This is the most important credit card feature. Credit limit is the maximum amount you can charge on the card. So when you cross the limit, your creditor will charge an over limit fee. You can opt for a normal credit limit which is given by the bank at the time of issuing a credit card or for a revolving credit limit which varies with the financial exposure of the credit cardholder.

  • APR

    APR or the annual percentage rate is the interest rate applied to balances carried beyond the grace period. Credit cards have different APRs for different types of balances, like balance transfers or purchases. Higher APRs are charged for balance transfers and cash advances.

  • Regular charges

    These are the routine charges charged by the credit card company which include annual charges and additional charges like charges for an add-on card.

  • Record keeping of all transactions

    Credit card companies keep a record of all your transactions and such a record helps the companies to raise appropriate billing amounts payable by their cardholders, either on a monthly or some periodic basis.

  • Rewards points

    Not all credit cards offer rewards on purchases. Credit card perks differ from company to company and also on the type of card that you opt for.

  • Grace period

    Grace period is referred to the minimum number of days a credit card holder is given to pay his or her credit card bill. This grace period does not involve any interest or charges but if you carried a balance from the previous month, you may not have a grace period for your new purchases.

  • Higher fees for cash withdrawal

    Though all credit cards allow cash withdrawals but interest charges for cash withdrawals are higher than usual and no grace period is provided for cash transactions.

Credit card is important and essential but one needs to be cautious about its security. Take adequate precautions and protect yourself against any credit card fraud by knowing various types of credit card frauds. You must also know credit card tips for smart users.

Consumer VOICE experts compared credit cards on basis of credit card interest rates, best credit card deals and other parameters to list the best credit card.

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