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SolveYourProblem.com
Article Series: Debt Relief & Debt Consolidation
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Rid Of My Debt...NOW!
Your
Guide On Choosing
a Credit Card To Suit You
Reach into your wallet or purse, pull out
a card, swipe, and you’re done. It is very easy to use a credit
card. The problem lies in choosing a card – and it has nothing
to do with the picture on the front! Choosing a credit card
that works best for you is vital to your credit rating. If
you choose incorrectly, you may find yourself in deep debt
trouble. Here is some basic, yet extremely important, information
that will help you make the right choice.
Your Money Handling Habits
Choosing a credit card that is perfect for one person may
be a dismal failure for you because your habits are different.
When it comes to choosing your credit card, you need to look
very closely and honestly at your habits.
For instance,
do you typically carry a balance or do you pay off the card
at the end of each month? If you answered “yes”
then you will need to shop for:
- A low Annual
Percentage Rate (APR). The APR the interest rate you will
pay on any outstanding balances each month. The
higher the rate, the more you will pay in interest charges.
- A fixed-low
rate. This means that they will guarantee that your rate
will stay low. Oftentimes, a company will offer a low introductory
rate to get
you signed up and then increase the rates drastically in 3, 6, or 9 months.
The problem with a guaranteed rate is that an annual fee often accompanies
it. You will need to decide if the lower interest rate guarantee is worth
the cost of the annual fee.
If you will be
paying off your card at the end of each month, you will not
have to worry as much about a low APR since you
will not be using it. And with no need for a guarantee, you
may be able to avoid yearly fees. However, you will want to
be sure to get a card with a grace period.
- Grace Period:
Be careful to get a card that allows you to pay off your
bill at the end of the month with no finance
charges. Those that don’t offer the standard grace period
begin charging you interest the moment you make a purchase.
- Cash Advance Fees:
Be aware that most cards charge interest, and sometimes at
a higher rate, for cash advances and this charge begins with
no grace
period even if your card offers a grace period for purchases.
You also need to decide how reliable you will be when it comes
to paying on time and keeping yourself under the card limit.
If you are often late paying your bills or often do not know
how much credit you have left, you will want to watch out for
transaction fees and other charges. Many card companies charge
a late fee and an over-the-limit fee. These can be substantial.
Your best bet is to pay on time and keep under the limit, however,
finding a card with lower charges is a good idea.
Here is another important question to consider when looking
at your money handling habits: Do you use the card rarely,
occasionally, regularly, or frequently? Those that use their
cards for just about everything instead of using cash or checks
will want to look for credit card protection. This way, if
you lose your card or it is stolen, you will not be responsible
for any purchases made.
Finally, consider
the different benefit programs that cards are offering.
- Do you travel?
Then consider a card with frequent travel miles as a reward.
Or perhaps one that offers traveler’s insurance.
- Do you use your
card for large purchases like electronics? You may want to
consider credit card insurance that will replace your equipment for a specified
period of time if it breaks down or gets stolen.
- Are you saving
to buy a new car? There are cards that offer new car rebates.
- Do you have a
favorite charity? Many cards now support specific charities,
universities, and organizations by paying the entity a specific amount with
each purchase you make.
What matters most is to find the features that fit your pattern
of spending and paying. Don’t get fooled by the gimmicks or
the advertisements. Know your spending habits, look at the
small print, and choose the card that is best for you. With
all the different cards available, you will be able to find
the right fit for you.
Click here to discover my current SolveYourProblem recommendation and choice pick for the fastest, easiest and best debt relief solution you'll find anywhere. Get it and reward yourself with more cash in your pocket.
# # # # #
Wesley Atkins
is the owner of http://www.credit-cards-advisor.com - which
aims to get you fitted with the best
credit cards to suit your situation. With numerous credit
card articles and
easy online
credit card applications you will never choose
the wrong credit card again.
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