Selecting the Right Credit Card
Not all credit cards are created equal. There are many varoius
types of credit cards, and if you are looking to apply for a
credit card, it may be difficult to decide which type of card is
best for you. We will cover several popular types of credit
ards, to help you figure out which type of credit card meets
your unique needs.
Low-Interest Credit Cards These credit cards are often usefull
if you are currently carrying a ballance on some of your current
credit cards. Low Interest credit cards, also know as ballance
transfer credit cards, are offered at significantly lower
interest rates than what you may be used to. They are good for
transfering ballances to a new card at a lower rate. Often
times, this will allow you to pay off your ballance in a shorter
ammount of time, and for less interest.
Rewards Credit Cards - As the credit card industry becomes more
and more competitive, companies are scrambling to get and keep
cardholders and they are willing to bribe you to use their
cards. This is where rewards cards come in. Each program has
their own rules, but they all work in a similar fashion. By
using your rewards credit card, you accumliate points that can
then be redeemed for prizes, and sometimes even cash. There are
many options available as to what type of reward cards you can
choose. If you use credit cards frequently anyways, you might as
well get something for it, right?
Bad Credit Credit Cards - Even if you have poor credit, you can
still be approved for a credit card. Now, credit cards offered
to people with bad credit often times have much more restrictive
terms, higher fees, lower limits and a higher intrest rate. If
your credit is particurally poor, you may have to go with a
secured credit card where by you put down a security deposit, or
prepay your redit limit. Why do that? BEcause, by using one of
these credit cards and dilligently paying your bill on time, you
can actually improve your credit and before long you will be
eligible for lower rates thru a traditional credit card.
Student Credit Cards - These credit cards often have a lower
limit than their more grown up counterparts, making them a
perfect "starter" credit card for students. Young people can
learn how to control debt without the risk of getting in too
deep.
As you can see, there are nay choices in credit cards. By
choosing the right credit card for your particular situation,
you can build your credit in a responsible way and enjoy perks
that suit your lifestyle.