With the development of cashless card systems or the electronic money, the life of consumer seems to be quite at ease. And every day more and more new credit card companies enter the domestic as well as the international market to reap the benefits . What is the most interesting aspect of all these credit card companies is that each of them claims to be the best. And this aspect of everyone being the best generates a lot of confusion and dilemma for the general consumer. What makes a difference amongst the various credit card deals is the internal technicality with which they operate, of which the common user is not quite aware of . The sea in this case looks smooth on the surface but is quite boisterous within .
The interest being charged by the card company for the credit they provide can be an interesting aspect to start with when looking for the best credit card deal . Typical credit cards have interest rates between 7 and 29 .99% in USA , depending upon the borrower\\'s credit history. So the best to pick would be the one having the lowest interest rate . Another important factor is the interest free period provided by the credit card, commonly known as the grace period . The grace period can be anything from 20 to 120 days. So the best of the best could be the card offering the grace period of 120 days with the lowest of the interest rate . The consumer has to be on the toes to keep comparing the various credit card deals and the facilities they provide. This comparative study reveals a lot of benefits which the individual might be in turn looking for . And the most important is to know the in and out of the credit card?s modus operandi.
Modus Operandi
Most of the credit card companies in US use any of the four ways to calculate the individual card holder ?s interest which are Average Daily Balance, Adjusted Balance, Previous Balance and Two-Cycle Average Daily Balance . is the principal means of comparing credit products . Because interest is compounded on a monthly basis, to calculate charges on a credit card account the APR has to be de-compounded . Most major banks use the following methodology. They increase the figure to the highest possible value while still meeting advertising requirements . e.g., if a card is advertised at a percentage rate of 17.9, then any value up to 17.949 will still be rounded down to 17.9, and thus still be correct. Once this number has been derived, it must be converted to a decimal multiplier - in this case the number would be 1 .17949. To derive the monthly rate, obtain the twelfth root (i .e., rise to the power 1/12). This will provide an individual with a rate which, when compounded over a year, will equal the APR.
Interrelated fee
And once the individual has worked out the nest credit card deal in terms of interest and the interest calculation methodology, one should turn around to interrelated fee(s) associated. The credit card companies make many other fees that interrelate with interest charges in complex ways (since they make a profit from the whole combination), including transactions fees paid by merchants and cardholders, and penalty fees, such as for borrowing over the established credit limit, or for failing to make a minimum payment on time .
The interest being charged by the card company for the credit they provide can be an interesting aspect to start with when looking for the best credit card deal . Typical credit cards have interest rates between 7 and 29 .99% in USA , depending upon the borrower\\'s credit history. So the best to pick would be the one having the lowest interest rate . Another important factor is the interest free period provided by the credit card, commonly known as the grace period . The grace period can be anything from 20 to 120 days. So the best of the best could be the card offering the grace period of 120 days with the lowest of the interest rate . The consumer has to be on the toes to keep comparing the various credit card deals and the facilities they provide. This comparative study reveals a lot of benefits which the individual might be in turn looking for . And the most important is to know the in and out of the credit card?s modus operandi.
Modus Operandi
Most of the credit card companies in US use any of the four ways to calculate the individual card holder ?s interest which are Average Daily Balance, Adjusted Balance, Previous Balance and Two-Cycle Average Daily Balance . is the principal means of comparing credit products . Because interest is compounded on a monthly basis, to calculate charges on a credit card account the APR has to be de-compounded . Most major banks use the following methodology. They increase the figure to the highest possible value while still meeting advertising requirements . e.g., if a card is advertised at a percentage rate of 17.9, then any value up to 17.949 will still be rounded down to 17.9, and thus still be correct. Once this number has been derived, it must be converted to a decimal multiplier - in this case the number would be 1 .17949. To derive the monthly rate, obtain the twelfth root (i .e., rise to the power 1/12). This will provide an individual with a rate which, when compounded over a year, will equal the APR.
Interrelated fee
And once the individual has worked out the nest credit card deal in terms of interest and the interest calculation methodology, one should turn around to interrelated fee(s) associated. The credit card companies make many other fees that interrelate with interest charges in complex ways (since they make a profit from the whole combination), including transactions fees paid by merchants and cardholders, and penalty fees, such as for borrowing over the established credit limit, or for failing to make a minimum payment on time .
