Which Credit Card is Right for You?
Once upon a time, credit cards were simple. A plastic card that allowed you to “charge it,” pay off the debt later with a few added fees, and that was that. Our fast paced world thrives on technology and options. Many cards now come with features and perks that make them more enticing to the consumer. Credit cards have become a competitive market where the idea is to gain and keep the customer through great rates, reward programs and more. However, it’s still up to the consumer to decide which credit card fits both their needs and wants. So, exactly what kind of options do you have?
There is, of course, the most common option of the standard credit card. These are unsecured cards offered by most any bank or financial company that issues credit cards. The APR on these varies from issuer to issuer. Standard credit cards include balance transfer cards, which allow the cardholder to transfer the balance owed on a high interest card onto a lower interest card. Another type of standard credit card is the low-interest rate card. This might be a card that offers a lower introductory rate and then increase after a period of time or a low fixed-rate APR.
Credit Cards with Incentives
Many credit cards these days offer perks and rewards just for using them. If you frequently use your credit card, this might be the best option for you. By simply using your card for purchases, travel, etc. and keeping your balance paid, you can earn rewards, points and even cash to use for future purchases and other things. Talk about customer appreciation! It’s really a nice perk for credit card holders.
There are several different kinds of rewards programs, so you will want to explore the options and decide which suits you most. Cash Back credit cards reward you by allowing you to earn cash on eligible purchases. Everyone loves cash, so this is a popular incentive. These cards only offer a small percentage back on purchases and may take time to add up. They also typically have an annual fee of $50 to $100. However, if your faithful about paying your balance and using your card, it can be well worth it. Some credit card companies are also offering a similar incentive with their savings account program. They will deposit so much per transaction into a high yield savings account.
Points cards offer the cardholder a chance to earn points on their purchases. After accumulating so many points, they can be redeemed for specific items. The promotions and conditions are subject to change, so be sure to stay up-to-date on the fine print. some of these cards will have an annual fee, while others do not. There are also specific points, rebate and rewards programs for travel such as airfare (frequent flier programs) and hotels, retailers, and gasoline purchases. There are other points programs out there, but these are among the most common and most popular offerings.
Credit Cards To Repair Your Credit?
Yes, there are also credit cards made for those with bad credit and in need of credit repair. Some of the best options among these are secured credit cards, which usually require an application fee, an initial deposit equal to or greater than the credit on the card, and a low credit limit. These will allow you to use the card and make payments, helping to repair your credit rating. Another good option is a pre-paid credit card. It’s a lot like a gift card or a debit card, however, you can use it anywhere and don;t run the risk of going over your limit or going into debt because you load the money onto it and you control the spending.
There are also credit cards geared toward businesses and students, so if you fit the bill, you might look into these options.
A credit card can be a great asset to have, however, terms, conditions and rates will vary between card companies, so be sure to read the fine print so you will know what you’re getting and what to expect.
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