Reach into your wallet or purse, pull out a card, swipe, and you're done. It is very easy to use a credit card. The problem lies in choosing a card ? and it has nothing to do with the picture on the front! Choosing a credit card that works best for you is vital to your credit rating. If you choose incorrectly, you may find yourself in deep debt trouble. Here is some basic, yet extremely important, information that will help you make the right choice.
Your Money Handling Habits
Choosing a credit card that is perfect for one person may be a dismal failure for you because your habits are different. When it comes to choosing your credit card, you need to look very closely and honestly at your habits.
For instance, do you typically carry a balance or do you pay off the card at the end of each month? If you answered "yes" then you will need to shop for:
# A low Annual Percentage Rate (APR). The APR the interest rate you will pay on any outstanding balances each month. The higher the rate, the more you will pay in interest charges.
# A fixed-low rate. This means that they will guarantee that your rate will stay low. Oftentimes, a company will offer a low introductory rate to get you signed up and then increase the rates drastically in 3, 6, or 9 months. The problem with a guaranteed rate is that an annual fee often accompanies it. You will need to decide if the lower interest rate guarantee is worth the cost of the annual fee.
If you will be paying off your card at the end of each month, you will not have to worry as much about a low APR since you will not be using it. And with no need for a guarantee, you may be able to avoid yearly fees. However, you will want to be sure to get a card with a grace period.
# Grace Period: Be careful to get a card that allows you to pay off your bill at the end of the month with no finance charges. Those that don't offer the standard grace period begin charging you interest the moment you make a purchase.
# Cash Advance Fees: Be aware that most cards charge interest, and sometimes at a higher rate, for cash advances and this charge begins with no grace period even if your card offers a grace period for purchases.
You also need to decide how reliable you will be when it comes to paying on time and keeping yourself under the card limit. If you are often late paying your bills or often do not know how much credit you have left, you will want to watch out for transaction fees and other charges. Many card companies charge a late fee and an over-the-limit fee. These can be substantial. Your best bet is to pay on time and keep under the limit, however, finding a card with lower charges is a good idea.
Here is another important question to consider when looking at your money handling habits: Do you use the card rarely, occasionally, regularly, or frequently? Those that use their cards for just about everything instead of using cash or checks will want to look for credit card protection. This way, if you lose your card or it is stolen, you will not be responsible for any purchases made.
Finally, consider the different benefit programs that cards are offering.
# Do you travel? Then consider a card with frequent travel miles as a reward. Or perhaps one that offers traveler's insurance.
# Do you use your card for large purchases like electronics? You may want to consider credit card insurance that will replace your equipment for a specified period of time if it breaks down or gets stolen.
# Are you saving to buy a new car? There are cards that offer new car rebates.
# Do you have a favorite charity? Many cards now support specific charities, universities, and organizations by paying the entity a specific amount with each purchase you make.
What matters most is to find the features that fit your pattern of spending and paying. Don't get fooled by the gimmicks or the advertisements. Know your spending habits, look at the small print, and choose the card that is best for you. With all the different cards available, you will be able to find the right fit for you.
Wesley Atkins is the owner of http://www.credit-cards-advisor.com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again.
Credit counseling is a free service that many people with... Read More
Your credit report--a type of consumer report--contains information about where... Read More
Do you know the costs associated with your credit card?... Read More
Did you know that you could make sure to get... Read More
Credit card companies make their money on the 85% of... Read More
Just as there are too many credit card companies to... Read More
Have your read your credit card contract through completely? Do... Read More
Most consumers are aware that they have something known as... Read More
Using a credit card wisely is an important step in... Read More
Ever wondered what is a credit report? If you've ever... Read More
In "Become the Squeaky Wheel" a book recently published, Michelle... Read More
In industrialized nations, going into debt starts early. It's easy... Read More
What are inquiries?When you apply for credit the creditor or... Read More
Let's face it, having credit is no longer a choice.... Read More
Even if you think you have a wonderful credit report,... Read More
This summary of the Fair Credit Reporting Act will explain... Read More
If you are married, establish separate credit accounts.Try to finance... Read More
Like It Or Not, You Have A Score To Settle!... Read More
What are the APRs charged by the credit cards in... Read More
Credit 101How does a creditor determine whether to grant you... Read More
The nightmare of identity theft strikes an estimated 750,000 people... Read More
The process of clearing credit can be laborious and frustrating,... Read More
Commercial collections: fixture of the new B2B cultureIf you're in... Read More
What do a shoe retailer, an online discount broker, and... Read More
A consumer credit report is a factual record of an... Read More
Because most of us have one or two credit cards... Read More
What is Credit? Credit is money granted by a lender... Read More
Make Money from StoozingStoozing, this is a sophisticated method of... Read More
Thinking of applying for a credit card with a reward... Read More
If you want to purchase a new home or refinance... Read More
Did you apply for a personal loan only to be... Read More
Is identity theft really that serious? Thousands of people every... Read More
Have you ever really looked at your credit card and... Read More
In Less Than 30 Days. "What can you do to... Read More
Reach into your wallet or purse, pull out a card,... Read More
Chances are you've gotten your share of offers like this... Read More
As identity theft becomes more prevalent, the need to regularly... Read More
There are millions of consumer credit reports on file from... Read More
A credit score is most commonly known as a FICO... Read More
1. Buy clothes at thrift stores. BEFORE you buy them,... Read More
Bewildered by the sheer variety of debit cards and credit... Read More
Bad credit can be a burden for otherwise good credit.... Read More
Establishing credit and wisely managing your credit becomes easier when... Read More
Credit scores: all lenders use credit scores to determine interest... Read More
Credit Scores That HurtIs your credit score being held against... Read More
Ok, let's face it, everybody hates high credit card rates,... Read More
Somebody once said, "There is always a way of knowing... Read More
Not everyone has a positive experience with credit counseling. Potential... Read More
Well now we add CitiGroup and UPS to the Identity... Read More
His hard earned money? Gone. Creditors on his back everyday.... Read More
Article excerpted from the new book, "How to Do Space... Read More
It's the number one complaint from consumers and it only... Read More
Thanks to the Fair and Accurate Credit Act, American consumers... Read More
Have your read your credit card contract through completely? Do... Read More
Even if you think you have a wonderful credit report,... Read More
By now, you have undoubtedly heard of credit card fraud,... Read More
Most of us get a credit card on our name... Read More
Credit score is the key factor determining approval of almost... Read More
The Federal Trade Commission (FTC) has set up a new... Read More
There are many evils associated with credit cards, but there... Read More
To repair your bad credit does not necessarily mean that... Read More
Establishing credit is one of the most important things you... Read More
Credit counseling is an option you might want to consider... Read More
It is the scourge of our age: identity theft. Thieves... Read More
Credit Score FactorsThe information contained on our credit reports affect... Read More
TURBO-CHARGED KILLER RATE SAVING INFORMATION!Let's just take a brief moment... Read More
Credit |