Many people have realized how inconvenient it is to carry cash and are carrying just debit cards in their wallets. Debit cards are great, but there's another option--show your wallet some love! Compared with debit cards, credit cards are:
- Accepted in more places
- Have fraud liability protection built in
- A great way to build your credit score, if used responsibly
Make sure you get a credit card that gives you the features you want while paying as little as possible for them. When shopping for a credit card, look for:
- No annual fee: Watch out for fees that can be charged automatically to your card. Find a card with no annual fee or call to see if the card you're considering will waive the fee.
- Rewards: Rewards programs are a nice bonus but don't let them be the deciding factor. First, rewards are shrinking across the board. Second, reward expiration dates might encourage you to spend recklessly. Third, paying for everything with a credit card can put you in a terrible position if you lose your job or something else unfortunate happens.
- Low fees: Look for two factors: grace periods and the annual percentage rate (APR). Make sure the card you're investigating offers a grace period between your charge and the interest accumulation of 28 to 30 days. APRs are usually between 13% and 24%, so look for a low APR. Avoid interest by paying your credit card off in full each month.
Maybe it's time for you give your wallet a treat. Stop by Extra Credit Union to get the best deal on your credit card or call us today at 586.276.3000.
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