A monopoly is a situation that arises when a business has no competition and is free to charge whatever rates it desires, leaving customers with few options to do anything about it. This is something the government tries to avoid by forcing companies to break up into smaller units and compete with one another for business. Fortunately for consumers, a monopoly has never existed in the credit card industry and they have a multitude of choices for selecting the credit card that best meets their individual needs. There are several things that consumers should pay attention to before signing their name by the big X and accepting a new credit card.
Annual Percentage Rate (APR)
If a consumer plans to carry a balance month to month, he or she will pay interest for that privilege, so it is wise to search for a card with the lowest APR. However, consumers should also understand all terms regarding that APR, including whether it will be adjusted if a payment is late, if they go over the limit or if the APR is only an introductory rate that will be raised several months later.
Transfer Balance Rates
In an effort to get more consumers to switch from their current credit card provider to their company, some credit issuers offer a zero or very low percentage balance transfer rate which applies only to the balance consumers transfer from their old credit card to the new one. This is another area where the fine print needs to be read very carefully, since there can be a hidden fee for making the balance transfer or a limit on how much can be transferred to get the low rate.
Credit Card Protection Plans and Other Benefits
In this day and age when people are on-edge about identity theft and being held responsible for someone else's charges if their credit card is lost or stolen, some credit card issuers offer a zero dollar liability for charges that the consumer did not make. This may be a free service, or it may be available for a monthly fee that is billed to the customer's credit card.
As a way to remain competitive with one another, many major credit card issuers offer their customers several benefits like free rental car insurance, roadside assistance and discounts to other services and avenues of entertainment. Customers should ask about any additional benefits at the time they obtain the card.
Look for a Credit Card Company That Keeps Up with Technology
In our digital age, many consumers take it for granted that they will always have the opportunity to view balances and make transfers online or through their cell phones anytime they wish. It is the sign of a healthy credit card company if it shows the ability to take risks and introduce new technology that benefits its customers by offering them even more convenience.
Not all credit cards offer the same benefits and rates, so you should go online to compare credit cards at Kanetix. Doing a comparison of credit cards at Kanetix will let you see the different features and benefits that each card offers. Do a comparison today and get the best credit card for your needs!
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