The term “free credit cards” is not entirely accurate. Companies that issue credit cards may not charge an application fee to new customers but that doesn’t mean that the credit cards themselves are free. The only way that you can get your credit cards “free” is by never carrying a balance on them.
No Fee Credit Cards
There are a number of credit cards available that don’t charge a fee to open an account or to keep one open each year. If you are considering a card with an annual fee, it may make sense to you if you were also getting a low interest rate. Before making a final decision about which card to apply for, consider your options carefully.
Credit Card Usage
The first thing to consider is how you will be using the card. If you will be paying off the balance in full each month, then you will want to find a card that gives you a long grace period. The grace period is the number of days each billing cycle before you will be charged interest on your purchase. Pay for your purchases before interest is added to the bill, and you aren’t charged anything above the amount you charged.
If you are likely to carry a balance from month to month, you will want to find a credit card that offers a relatively low rate of interest. When you compare the different offerings available look for the reference to the APR (Annual Percentage Rate). Getting a cash advance with your credit card is a convenient way to get extra funds when you are a bit short, but you may be charged a higher rate of interest for the privilege. The credit card company may also charge a fee when you do so, no matter what the amount of the cash advance is, and you will need to factor that in when you are trying to choose the right card for your needs.
Comparing Annual Percentage Rates
One credit card may have different annual percentage rates for new purchases, balance transfers and cash advances. The cardholder will likely be charged a higher rate of interest for cash advances and balance transfers than for new purchases put on the card. This information should appear on each statement you receive.
If you have a history of making your credit card payments late, then be prepared to be penalized with a higher rate of interest than a cardholder who makes his or her payments on time. For some credit card companies, being late a couple of times in a six-month period is enough to trigger a change in your rate. While you are probably not planning to be late with your payments before you even open the account, it’s a good idea to familiarize yourself with the credit card company’s policy anyway.
Some credit card issuers offer a low introductory rate to new customers for a certain time. After this introductory phase expires, the interest rate increases to the “normal” rate for the card. When you are comparing credit card offers, consider the fact that the break you get in the interest rate is only temporary. The permanent interest rate may be higher than the one offered by other credit card companies that don’t offer new customers an introductory rate, and you will need to make a choice about whether this type of offer is one that will benefit you in the long run.
How Interest Is Calculated
Another factor you need to consider when comparing credit cards is how interest will be calculated on any outstanding balance you owe. Some companies use the average daily balance for this purpose, while others calculate this amount over one or two billing cycles. Look for a card that calculates interest over a single billing cycle and uses the average daily balance (without including new purchases) to avoid paying more than you need to in interest charges. Cardholder agreements are not always easy to interpret, and you need to understand the details to make an informed decision about which card is right for you. So call them and ask any questions you have.
Get Your Free Credit Card Now!
While the idea of free credit cards may be an attractive one, the fact is that unless you can pay off your balance in full before the grace period expires, they will end up costing you. You can avoid paying more than you have to by using the (truly) free credit card chaser on this page to find the right one for your personal situation.Get started now!
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