| When it comes to choosing a credit card, you | | | | solution when you need a loan of money over a |
| have many options to consider as a means of | | | | longer period of time, or if the amount you |
| achieving your goal. Ultimately you want a | | | | need to borrow is a larger amount than what a |
| credit card that is the cheapest, and that | | | | person would usually borrow using a credit |
| gives you the most flexible terms and | | | | card or a bank overdraft. |
| conditions. However, judging those two | | | | |
| factors can be difficult for those of us that | | | | Friends and Family - if you want to borrow |
| are not credit card experts. Before you | | | | money, then you could consider asking your |
| decide for sure that you wish to get a credit | | | | friends and family rather than asking a |
| card, why not consider the alternatives that | | | | financial institution. Although many people |
| are available? | | | | are in a position where they are not able to |
| | | | do this; some are, and if they can, then it |
| The Alternatives | | | | can often work out to be a good solution. |
| | | | |
| Debit Card - should you want a credit card as | | | | Factors to Consider when Choosing a Credit |
| a means of ensuring that you can pay with a | | | | Card |
| card, then why not consider getting a debit | | | | |
| card instead? This will mean that you are not | | | | APR - when choosing a credit card, one factor |
| borrowing any money and that they money is | | | | you need to look at it APR. APR is the amount |
| coming out of your bank account. | | | | of money that you will get charged for |
| | | | borrowing money. This amount means the |
| Bank overdraft - you should consider using a | | | | interest rate that you will be charged over |
| bank overdraft if you are wanting to borrow | | | | the course of a year, and is usually |
| money over a longer period of time, as you | | | | presented in percentage form. |
| may find that it will work out cheaper than a | | | | |
| credit card. A bank overdraft is basically | | | | Limit - this is the amount of money that you |
| like a loan of money, however all it means is | | | | will be allowed to borrow. When you reach the |
| that you are allowed to have a negative | | | | limit on your credit card, then that is you; |
| balance in your bank account. | | | | you are back to having no money. Despite |
| | | | that, limits can often work well for ensuring |
| Bank Loan - a bank loan is often the best | | | | that you keep any debt under control. |