A cash card is very important since you can use it to make payments for all goods that you buy. However, if these cards are used improperly, they can inflict horrendous financial damage you. Therefore, when choosing a cash card company, there are things you need to consider so that you get the best financial services. Here are the things you need to consider.
Your spending habits
The first question that you need to ask yourself before you get a cash card is how you intend to use it. You have to make sure that you will be able to pay off your credit balances at the end of every month. Do you anticipate that you might be unable to settle your balance at the end of every month? Will you use your card to pay for only emergencies or almost everything?
If you can settle your credit balances at the end of every month, then you should not care about the interest rate charged on the card. The best card for you will be one with no annual fees but with a greater grace period so that you don’t get slapped with a finance charge.
Credit limit
This is the maximum amount of money your cash card company is willing to lend you. Your credit history will determine it. You should go for a cash card that offers reasonable credit limit.
Fees and penalties
Cash card companies can slap you with penalties if you go over your credit limit or if you fail to pay your balances in time. When choosing a cash card, you should go for a card that charges reasonable fees. You can go for a card that has no transaction fees and has zero interest rates of the first 12 months.
Incentives
Most cash card companies usually have reward programs to their customers. This is aimed to induce you to use the card. Ensure that your card does not charge extra for the reward programs that it offers. The rewards offered should be redeemable.
Balance computation method
How your lender will charge your balance to come up with the finance charge is very important. Most cash card companies compute the finance charge through average daily balance. You should avoid cash card companies that compute their balances in two billing cycles. This is because when you are charged in two billing cycles, the financing fees is higher as compared to when you are just charged in one.