Avoid Fake Credit Cards

Category: Finance, Credit.

Just as there is no best credit card for everyone, there s no single one that stands out as the worst, or one to avoid.

It may be easy to say avoid any credit card that has an APR above x% - but there are people out there who need a card and can only qualify for one with a high APR. It s all about finding the one that fits your needs and your circumstances. If one doesn t compare credit cards based on APR or annual fee, then how does one determine which are best avoided? Know yourself. Rather than putting together a list of credit cards to avoid, it s far more profitable to pay attention to a list of do s and don ts that will help you select the best for your circumstances and situation. There are some very good comparison websites where you ll find guides to selecting the best credit card for your spending and money management style. If you tend to carry balances on your account, pay attention to the APR and avoid those with high APR s and late fees that kick in with a vengeance.

In general, if you tend to pay your accounts in full each month, apply for a card that offers you rewards for using it on things you ll purchase anyway. Know the credit cards you re applying for. Take the time to read cardholder agreements so that you know all the fees, penalties and conditions to which you re agreeing. Do your homework before you make applications. In particular, look for the following- all of which have to be outlined in the card member agreement: - Annual fees or participation fees which will be charged to your new card. The agreement must also disclose whether the rate is fixed or variable, and if it s variable when and how often it can be changed, and how much notice they re required to give you. - Transaction fees for particular transactions, may be additional, like cash advances.

You ll be liable for the first year s fees even if you never use the card. - The APR( annual percentage rate) is the interest rate that will be charged on your outstanding balance. Those need to be listed in the agreement. - Any monthly fees for your card. Knowing how and when those fees are computed can save you a considerable amount of money. Some credit card companies charge a monthly fee whether or not you use the card. - The method used to compute the interest on your balance can make a big difference in the fees that you re charged. Avoid fake credit cards. There are some offers that imply that you ll get a major credit card with a large spending limit- but the card that you actually get is only valid if you purchase items from their catalog or online merchants.

Be sure to read all the information about the options you re considering carefully. You ll pay a premium price for a limited number of products at high interest rates- and in most cases, you ll pay a high annual membership fee and monthly participation fee which you ll be billed for even if you never use the card. When you re looking for the best credit card, make sure you take the time compare all the options before making your applications.