Knowing the Best Credit Card For You

The reality is that credit cards are not for everyone. While they are easy enough to get and extremely easy to use, some people just do not have the discipline to control their purchases. They cannot make sensible decisions and they simply cannot go one without using their cards.

However, if you are the type of person who is aims to have a source of money when cash is not immediately on hand, it is best that you get a credit card. On the other hand, if you are after the convenience but you do not want to be in debt, then it is better to settle for a debit card instead.

Types Of Cards

If you decided on getting a credit card, be aware that it has two types. One is those cards that have interest-free days and those that do not have interest-free days. Cards with an interest-free period are best if you pay off your balance in full per month and you avoid cash advances.

The no interest free period card work best for individuals who do not pay off their outstanding balance per month. Be aware that people who do not pay their cards off each month are likely to have high interest cards. In short, they pay more that they should.

Interest

How is interest charged?

In general, interest is charged from the date of the purchase of items or from the date that your monthly statement is issued. In the case of cash advances, interest is normally charged from the date of the withdrawal. Note that you have to insist seeing a copy of the Conditions of Use before you apply.

Fees

All cards have several fees. However, these fees will depend on how you use your card. The most commonly charged fees are the following

-Annual Fees
-Fees for reward programs
-Late payment fees
-Fees for exceeding credit limit
-Payment dishonour fees.

All fees most be disclosed properly. Many lenders tend to publish their fees and charges in booklets and on websites. As long as the terms and conditions for the card give the lenders the right to increase the current fees and/or impose new ones, there is nothing you can do about it. However, you do have the option to switch to a different card or shop around online to get the best credit card offers. The best way to get the best offers is by comparing different cards.

Credit Card Comparison

These days, getting the best credit card offers is much easier, thanks to the internet. When looking for the best cards for your needs, it is essential that you use credit card comparison sites. Comparison sites are websites that gather different information regarding all the types of cards available on the market today. All you need to do to start shopping around is to read all the facts about cards, comparing them with one another and then selecting which are the the most suitable for you in the group.

That said, make sure that you are only using the most reputable comparison site, one that can provide you with everything you need to know to get the best card offers out on the market today. Go for comparison sites that have a long history of quality service and accurate information such as The Credit Card Guide. Simply browse through different credit cards, compare the information side by side and select the best among your chosen card.

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Get a Longer Warranty With the Best Credit Cards

Think back to the last time you purchased a computer, a washer or dryer or other large ticket item. How much did you pay for the extended warranty on that purchase? Chances are you put a good chunk of change into paying for a little more protection against what could have gone wrong as soon as the manufacturer’s warranty ran out.

The other possibility is that you learned the hard way that you should always get a little extra coverage. Perhaps you thought you take good care of things and didn’t need the extended warranty. Then it seems just like clockwork the big ticket item you bought broke down just after the manufacturer’s warranty ended.

Instead of going through the hassle of paying more for extra warranty coverage or paying for a whole new item when your warranty ends and your item breaks down, why not let someone take care of it for you, paying for an extended warranty in your name. You may be thinking, who would do that? The answer could be in your wallet.

Many of today’s best credit cards have a lot of traits that the credit card holders don’t know about. One of these traits is warranty extension. The way this works is that if you purchase the large ticket item with the credit card, the credit card company will double the manufacturer’s warranty for you.

If you are not sure if your current credit card company does this, you may want to call them and find out. Generally, you will have to call them anyway, to tell them about the purchase that you need the extended warranty on.

If you have had your same credit card account for a long time, you may be one of the unlucky ones without this perk. Some credit card companies only add perks on for newer customers, so you may have to look around, and consider applying for a new card if you want to get the best credit card offers that are out there.

While you’re looking, you may want to delve a little further into what is being offered by credit card companies these days. There are a number of other little specials that credit card companies often offer which you may not know about. From travel insurance to special discounts and other features, many of the best credit cards have pages of cardholder benefits that are just waiting for you to take advantage of them.

Choosing the Best Credit Card Offer

After the U.S. Census Bureau, more than 181 million American citizens are credit cardholders. Seventy eight percent of consumers own a credit card, and the average owner has 3.5 cards. This means, that nearly everybody ought to make its own decision on choosing the best credit card offer.

Just browse online or through the daily newspaper, move around the town and you will see competing offers everywhere. In this situation, what are the most important factors to consider while deciding?

Practically, there is not anything like a best credit card offer. The superior question is “Which offer is more suitable for me?” The expenditure habits and living styles of cardholders vary and their needs differ too. Before deciding which proposal is best, you must assess your requirements, income, lifestyle and expenditure habits.

Card interest rates

According to cardholders, interest rates and annual fees are among the most crucial factors in the choice of a credit card but not the only one. Consequently, a proper understanding of these rates is even more compulsory. Card interest rate is the rate, which the card issuers charge on the due amount. The card issuer charges you such an interest only if you do not fulfill your obligations on time. When you receive your credit card statement, it clarifies the full amount you owe the credit card supplier; it specifies the minimum payment that you must make (by a particular date), in order to avoid incurring fees. You have the choice of making either a full payment or just the minimum payment. If you decide to make a full payment by the due date, you are not charged any interest. Nevertheless, if you make a partial payment, the credit card supplier will calculate due interest based on the annual interest rate on the balance amount. The credit card companies calculate the monthly interest rate on the balance amount that you owe them. This is the full amount minus all payments made by you. This way, the interest rate is part of your balance for the following month (next billing cycle). If you make a partial payment once more, a new balance is re-calculated again; it keeps going on and on until you fully repay your obligation. According to recent data from Federal Reserve’s G.19 report on consumer credit, the average APR on credit card with a balance in 2011 was 12.78 percent. That is how credit rate acts in this vicious circle. Here is the cause why the most key variables in choosing a credit card is the interets rate.

The reward points

According to research from Federal Reserve Bank of Boston, more than 60 percent of consumers own a rewards credit card. Visa claims rewards cards now make up more than half of all cards issued and about eighty percent of credit card expenditures. Most cardholders state that rewards are the second-most important reason for deciding to apply for a specific card, behind no annual fees and ahead of rates. (Source: Group survey, January 2008)

If you fly by air frequently or have a preferred retail store where you often shop, you may choose one co-branded card; these cards offer rebates, discounts, and other kind of rewards when used for making payments at them.

Similarly, we may also have branded cards for gas stations and grocery stores where you often make purchases. If you do not have any specific needs, you can use a general purpose card, which accumulates reward points on every purchase. These points can later be redeemed for cash, rebates, or rewards. By so doing, such card could become a good deal for you.

Credit card fees

You must read your card agreement carefully just to make sure you understand all the fees you agree to pay. The most common fees to look for are: an application fee (charged when you apply for a card), an annual fee, a membership fee, a participation fee (a charge for having the card), a set-up fee (charged when you when you open a new account), a cash advance fee (charged when you use your credit card to get cash), a late-payment fee (charged if you pay after the due date), an over-the-limit fee (charged when your balance goes over your credit limit), a credit-limit-increase fee (charged when you ask for an increase in your credit limit), an insurance and a debt coverage fees. You should analyse your agreement thoroughly to make sure you understand the services offered and the fees.

To summarize: if you make a detailed research, you will find lots of lucrative proposals. However, this does not mean that all of them are suitable for you. In order to take a reasonable decision, you must evaluate your needs and rank them precisely. Further, you can make your choice and apply for a credit card, which covers most of your requirements and provides benefits.