Which credit card is best for you?

13
December

While credit cards and credit card companies often get a bad rep there are many benefits to using credit cards. The card issuers are thought as being bullies who take advantage of those who are already in dire financial positions and charge them ridiculous interest rates on top of finding ways to charge them ridiculous fees whenever possible.

It may be true that credit card companies take advantage of some of their clients, but they are a for-profit business and unfortunately the client usually needs them more than they need the client. It is best to use credit cards and take advantage of their benefits without carrying a balance. Credit card users need to be responsible and make sure that they are paying attention to how much money they spend on their card as well as when that amount is due or else they can quickly find themselves in a tough spot!

If you are new to credit cards, but you receive hundreds of mailing offers for credit cards every month it may not be a bad idea to take one of those companies up on their offer. A credit card can be a great way to build your credit rating, which in turn can help you save thousands of dollars if you ever take a mortgage or auto loan.

Although credit card companies are thought of as evil corporations that take advantage of their customers, they do offer great perks! When deciding which credit card offer you want to take advantage of you should make sure that you read all of the fine print and then weigh your options between the pros and cons of all of the cards. There are a few different categories that will separate one card from another: Limit, Rewards, Interest Rate and annual fee.

Credit reporting agencies like to see a high limit on your credit cards. This tells them that someone out there thinks that you are not a risk and will offer you a large loan. When deciding which credit card to accept, you should take the card with the highest limit offered. However, make sure that it is a limit that you feel comfortable with and that you can trust yourself having on your card.

One of the largest factors people take in to consideration when they choose a credit card is the ‘what can you do for me’ approach. This means, what do you get for using their services? Most credit cards have some sort of rewards program. You should check out the different programs and see which one matches up best with your typical spending. Some offer high percentages of cash back on gas, while another may offer cash back on dining. If you do not go out to eat too often you should probably use the gas card!

It is important to have a card with a low interest rate. There is usually a trade-off between interest rate and rewards, so you need to decide which is more important to you. Many people like to take a 0% intro period offer. This means that you will not have to pay interest on your purchases or balance transfers for a specific period of time. This is usually between 6-12 months. If you do not think you will carry a balance, then you should keep a card with higher rewards, but if you will carry a balance make sure you get a card with a low APR so you do not have to pay the bank too much money!

Last, unless you think it is worth it because of certain rewards, do not use a credit card with an annual fee. Sometimes it may be a good idea, like if you get a card that gives you miles and you happen to travel on that airline frequently, but in most cases it is not.

Start looking through all of that junk mail tonight to find the perfect credit card for you! It will give you rewards and you will be able to raise your credit rating!

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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