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The Most Important Feature of Your Credit Card May not Be the Interest Rate

BY Rachel | 6 July, 2016 | no comments

Credit cards have a number of amazing features on them. In fact, they have so many great features that consumers sometimes get confused about which features they should seek. Many people believe that a low interest rate is the number one most important feature on a credit card, but that may not be true. The following are five other features that are just as important in the overall scheme of things:

  • Interest-Free Promotional Period

The interest-free promotional period is the very reason that a credit card’s interest rate isn’t necessarily the most important feature. Some credit cards come with 0 percent interest rate for a set amount of time. The time periods can last as long as 26 months. The interest-free promotional period allows the consumer to enjoy the card without worrying about paying additional monies.

  • No Annual Fee

Lack of an annual fee is another important feature for a consumer. Annual fees are annoying killjoys that never go away as long as the consumer has the card. Finding a card that has no annual fee is like opening an amazing gift on a holiday. It brings smiles to one’s face.

  • Security Chips

Security chips are one of the newest features that modern credit cards have. The innovative technology makes unauthorised use of one’s credit card virtually impossible. The security chip provides an extra level of protection to combat the frequent overflow of credit card theft and fraud.

  • Fair Minimum Credit Limit

Having a fair or generous credit limit is important for consumers as it provides them with additional funds that they can use to conduct their shopping. A minimum credit limit of at least £500 provides the consumer with enough money to get through an emergency.

  • Balance Transfers

Balance transfers are amazing features because credit card customers can sometimes use them for purposes such as debt consolidations. A consumer knows whether a card has the balance transfer feature from the moment that person completes an application. The consumer can provide the account numbers to some of his or her debts and start the transfer process right away. One benefit of a balance transfer is that it makes the consumer’s debts organized. The person may only have to pay one bill each month instead of five or six different ones. Another benefit of a balance transfer is that the consumer can end up lowering the interest rate on his or her other cards just by transferring the balances to the new cards.

Many other amazing features exist on credit cards. The interest rate is important, but other elements have equal importance in the consumer’s financial life.