Finding the Best Consumer Credit Card
A credit card is a credit card. The best way to pick is to find a pretty one that matches your wallet and will be flashy when you use it, right? Nope, credit cards come in as many varieties as new cars have features. They can either be costly to own or they can save you money.
The business of issuing credit cards is extremely competitive. Every financial institution wants your business, and they are prepared to offer different terms and conditions in order to gain you as a customer.
The best credit card is the one that can save you money, but also be the least costly in the long run. So, no annual fee is a big factor in choosing a card. Also, select one that has a low annual percentage rate (APR) – not just for six months, but for the long-term. A card that offers 0% for six months and then 19.99% thereafter is not a good choice. One that offers 13.9% consecutively is a better option. This rate is the price you pay for using the credit card company’s money.
The fine print of all credit cards, the terms and conditions that you read before saying “yes, I agree and take the card”, clearly specify that there are expectations and responsibilities, such as timely payments. Make the minimum payment on time every month and you get to keep that low APR. Miss or mail one or more late and the company has the right to bump you into a higher APR. The fine print states that very clearly. By missing or being late makes you a high risk customer and they have the right to be compensated for that risk.
However, let’s assume that you are a good customer and make all of your payments on time and that the credit card will not be a tempting vice for continual abuse. In that case, you should be rewarded for your clean credit and timely payments. So, a card that offers travel vouchers, restaurant certificates, movie tickets, or even cash back could be a good option for you.
As you spend money using the card (and then dutifully paying it off each month), you earn points toward your bonus category. Some people use their credit cards for most of their monthly expenses and pay it off each month and in doing so, can earn points and rewards more quickly.
The fastest way to get a credit card is to apply online where you can get a response almost immediately. Some companies will give you access to start using the card online right away while the card is processed and mailed to your home in about a week or so.
If your current credit card has a balance and a high rate, you can still look for a card offering a low rate and purchase incentives and use the balance transfer option to get the better rate and the bonus points. However, just remember to close the higher rate card and destroy it in order to keep your credit in check.
Quick Tip #1
Although it may be overstated, there is a lot of truth to people ruining their credit score due to missing payments and
paying their credit card bills late.The fees can pile up and the interest rates can grow before you know it.
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Quick Tip #2
Never let your cards go out of your sight and always check your receipts and your card statements thoroughly.
These are simple ways to prevent credit card fraud happening to you. If you do see a suspicious credit card statement,
then call your credit card company straight away and cancel your cards. |
Quick Tip #3
Today’s cards offer a wide range of excellent features, including frequent flier points, programs that bank points toward a new car
and cards that support charitable organizations. Other options worth having include car rental insurance coverage, trip cancellation coverage
and extended warranty coverage. |
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