Good Business Plan On Choosing A Credit Card
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Option B: Credit Card Comparison Worksheet
When one is trying to make a choice of the credit card to apply, there are several factors that should be considered. These factors are; interest rate, reward programs, annual interest rate, reward programs, annual fees and membership benefits. Interest rate is important for individuals who carry balances and pay the monthly interest. Therefore, cards with low interest rates are best for such people. Reward programs are best suited for individuals who travel frequently. However, to qualify for the reward, these individuals have to have a large number of points. Such rewards can give them some free plane tickets. On the issue of annual fee, it is important for one to whether the benefits derived from their card outweigh the fee paid per year.
On the issue of member benefits, credit cards have varying benefits. For instance, some cards may offer their members travel protection. Some may offer roadside assistance to their members. Sometimes such benefits may become useful to some member’s lifestyle. One must weigh the advantages and disadvantages of such benefits. For example, individuals who do not travel often may not be interested in travel benefits. The best thing to do is to try to find out whether one can get the same benefit from somewhere else at a cheaper price. In the selection of credit card, it is important to consider these factors and select the card that suits best to ones lifestyle.
Comparing the three types of cards, major differences are in various fees and penalties that accompany each card. When choosing the best card for oneself, one should look at the card with low interest rate. This means that the card provider does not charge much for one to borrow money. The rate should not be low only to rise later. It is worth noting how the credit card companies make their money. The first method is by charging high interest rates. Interest charged on credit card account for the largest part of the profits that credit companies earn. An annual fee is another method that these companies use to generate profit. The higher the annual fee for the card the higher the profit earned. The other method is charging late fees, over-the-limit fees and other miscellaneous charges involved. When choosing the credit card to use, it is worth to consider how these charges apply to each card. For instance, among the three cards Citi Simplicity Card provide the preferred option. This card has a low annual fee and monthly charges to have the card. This card has low interest rates, no annual fee, no lateness fees or over-the-limit fee and other charges.
The third method is by charging the merchants and other service providers a fee every time that customers use the particular company’s credit card to purchase goods or services from their stores. Citi Simplicity Card provide a more flexible option card because, there are no annual fee, no lateness charges although it has a smaller grace period compared to other cards, it has a longer introductory period that the card holder will enjoy before they start paying the APR compared to these other cards. Moreover, the Citi Simplicity Card is a regular holder card. This means that for the other cards, the applicant should have a rating of excellent/good to be eligible for the card.
Another desirable feature of Citi Simplicity Card is the low transaction fee charged on this card compared to other cards. One is charged a minimum of $5 compared to the others that charges the customer a minimum of $10. Other cards have penalties going up to 29.4% while Citi Simplicity Card has no such fees. Therefore, Citi Simplicity Card provide the most advantageous credit card compared to others.
When coming up with the budget estimates, housing, utilities, food, transportation, medical care, insurances and household as well as maintenance estimates were sourced from internet in combination with consulting the community around the area targeted. To have a representative figure rental estimates for houses were retrieved from the community website. Clothing estimates were sourced from the market where the prices of clothes and shoes were taken by going to the market to either buy or just request for prices.
Education estimates were got by simply accessing several universities websites and have their yearly fees estimates. There were no estimates for childcare because there was none. Savings was a personal decision to lower the costs incurred by the individual living standards. Costs of seasonal events were got by checking the cost of items necessary for such events and ending up with these events estimates. Other expenses that individual may incur had little estimates according to personal decisions.
Citi. Citi Simplicity Card Agreement. (n.d.). Accessed January 30, 2015 from http://files.consumerfinance.gov/a/assets/credit-card-agreements/pdf/creditcardagreement_5406.pdf
numbeo.com. Cost of Living in Los Angeles, CA, United States Prices in Los Angeles, CA. Accessed January 30, 2015 from http://www.numbeo.com/cost-of-living/city_result.jsp?country=United+States&city=Los+Angeles%2C+CA
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