How to Choose the Best Credit Card
March 8, 2010 by Jay
Filed under Credit Cards
It’s no secret that there are seemingly countless credit cards available for people interested in acquiring one … or more. If you’d like to get a new credit card, the question you need to ask yourself is this: with so many to choose from, how do I pick the best credit card for me?
It’s not easy, but if you’re willing to invest a little time to conduct simple research – online is the best place to go – you’ll learn all you need to know about the cards that are available and you’ll be able to carefully review the benefits and costs associated with each card and then … make the right decision.
First, you need to know that there are two kinds of cards –
(1) 30-Day Loan Credit Card … the American Express Green Card is a good example. This card requires that you pay back whatever you have charged over the preceding thirty days. In essence, it provides you with a 30-day interest-free loan. The card does have requirements regarding income, work and credit history. In other words, you need to qualify for it and can be turned down.
(2) Revolving Credit Card … this is the card that most people carry. It could be a Visa or a MasterCard credit card. It doesn’t matter. You are generally required to pay back as little as 10% of your debt in any given month and the remaining balance is subject to interest charges. The interest charged by the bank that issued the card to you can be excessive or reasonable. It often depends on your credit history.
When you decide to apply for a credit card, it’s important that you understand – in advance – the terms being offered to you. Interest rates differ from one revolving credit card to another. It depends on the bank that issues the card. Importantly, penalties and late fees also differ from bank to bank. So … do your homework. Determine which credit card issuer is willing to offer you the best deal (lowest interest rate on purchases and on ATM withdrawals … most reasonable late fees and penalties).
It takes a little effort to find the best cards, but it’s definitely worth your trouble. Find the best card and you will save money, probably lots of it.
Of course, if you qualify, you are better served by applying for a card like American Express Green (30-day Interest-Free Loan). You can use that card and spend the bank’s money and then simply pay back that money after 30 days – no interest, no fees, no penalties … nothing.
Keep this thought in mind: Cards that include interest charges run the gamut from moderate to excessively-high interest rates. If your credit and work history is good, you will be able to qualify for – and get – a credit card that charges affordable interest on purchases and ATM withdrawals. And… you will save money – lots of it!
Related posts:
Best to never pay interest or late fees. If you pay your balance before it is due credit cards can be your friend.