How to Compare Credit Cards | All Information
Taking the step of hiring a plastic that gives one access to borrowed money to buy household items, make repairs or any other type of disbursement is a big one and in no way should be taken lightly.
We have all seen the advertisements that banking institutions make on their credit cards and we have even been victims of people who come to offer us one. People who already have experience managing their personal finances know what plastic is best for them, but we may be new people, which is why we have to learn how to compare credit cards .
What are credit cards?
As we have discussed in previous articles and according to Debitoor , the credit cards are: “plastic cards issued by a financial company that allow its owner the option of borrowing money from the issuer.”
Based on this, you can clearly see how useful they are, even more when compared to other financial products such as a loan or a debit card. The unforeseen always appear to us; there are situations in which you want to buy a product on offer or the car has been damaged and for not being a fortnight, we probably do not have the necessary money either in cash or in the bank account. Likewise, personal loans are fixed amounts that are granted, which means that they have a certain life.
What are the requirements to obtain a credit card?
This is one of the points that applicants take into account when comparing credit cards; what exactly is it that they need to obtain one. These financial products abound in the Mexican Republic, as in most other countries, with banks offering them normally by categories, each one varying from the benefits it offers, to the requirements to obtain it.
Among the most frequent requirements that banks require to be able to grant a credit card, are:
- Be of legal age and have a bank account. This is basic, since the payments made by the cardholder, the bank charges them from your checking account within the stipulated period of time.
- Proof of income. This document gives the bank evidence of the amount of money that one generates, allowing it to establish a limit to the amount that will be given as credit.
- Proof of address. Normally, credit card issuers request it with an age of no more than 2 months.
What do I have to know to compare credit cards?
There are many factors that influence the decision to choose a credit card. Normally the most important is the CAT, which according to the Bank of Mexico , is “a standardized measure of financing cost, expressed in annual percentage terms that, for informative and comparison purposes, incorporates all the inherent costs and expenses to the credits granted by the institutions. ” In other words, it is all you have to pay to have a credit card. To help you understand this measure well, the lower the CAT, the less expensive the credit will be.
In addition to the CAT, credit cards can also be compared based on the benefits they offer, which can be seen on the issuing bank’s website in the rewards section. These are also varied according to the type of card and the bank, but among the most common are: protection of trips or purchases, exclusive experiences and offers in certain products and services.
Actually, there is not one card that is better than another. As we mentioned, each one has its characteristics and the choice depends on the needs of the user. That said, it is always important to know how to compare credit cards in order to choose the one that best suits you.