Credit Card

When choosing a credit card, you should begin by thinking about what the credit card will be used for. The key factor in choosing a credit card is whether you will be paying off what is owed on a monthly basis or spreading the payments over a period. You can make use of the interest free period if you are able to pay off the balance on the card in full and on time every month.

If the card is to be used for borrowing and you won’t be able to pay off the balance on the card every month, then you will have to pay interest on the card. But remember to make sure that you can afford to make a regular payment.

For payments received after the due date, a late payment fee is assessed. Always check your credit card term to find out the late payment fee. You could lose some benefits associated with your credit card if you make late payments. For instance, you could forfeit the rewards you have earned on your card or even your promotional interest rate.