How to Choose a Credit Card

Credit cards are plastic cards used to make purchases. Issued as physical or electronic cards, credit card issuers bill their customers for transactions made on these cards.

Credit cards work like this: When using it in stores, when paying with credit, your card is processed through one of the major payment networks such as Visa, Mastercard, American Express or Discover for verification and includes a three-digit CVV code as well as possibly your credit limit.

Make sure your balance can be paid off before the introductory period ends as its interest rate will then increase significantly.

How to Select a Credit Card

Credit cards can be an efficient and beneficial way to pay for items and build credit; provided they’re used responsibly. But they should never become an excuse for debt if balances rise excessively or payments become missed.

Before applying for a credit card, it’s wise to carefully read and understand its fine print, especially its annual fee and interest charges on any balance transfers from other cards. Furthermore, be mindful of any fees that might arise as part of this transaction.