Most people have at least one credit card, if not more. No matter how many cards you carry in your wallet, there’s a chance that you might need a new one! Or maybe you want to consolidate your existing card debt onto a single credit card, for lower rates and easier managing of your finances? Whatever your reasoning for looking at new credit cards, you want to make sure you choose a card that gives you the best deal possible. Before you go applying for the first credit card you see, let’s just take a minute to evaluate your options and help you choose a card that will give you the most benefits based on how you use the card. First of all- if you already have several credit cards with balances that you are looking to move to a low or no-interest credit card offer, then you know exactly where to start! The balance transfer cards offer you a way to move the debt to a another card where you can make payments with very low interest or even no interest. Some balance transfer credit cards have zero interest for 12 months; while others have a very low fixed rate for the life of the balance you transfer. If you’re more interested in getting a credit card for your current purchasing needs, think about how you spend your money. Do you:
- Buy a lot of gas for your car?
- Travel frequently by plane?
- Rent cars?
- Need a student credit card?
- Purchase business expenses?
If you tend to spend more money in one area than another, you will want to look at rewards credit cards that are part of that category so you can get benefits based on that spending. You’ll also need to keep in mind that all credit cards have a credit rating requirement. So check your credit score so you know what your score is; and apply for cards that your credit qualifies for. You only want to apply once or twice- as the more applications you put in the more inquiries to your credit report and the lower your score will become!When looking at the various rewards programs that meet your spending needs, keep an eye on what the interest rate is on new purchases. You want a card with the lowest interest that you can qualify for- and if you know you’ll use the card soon after getting it, look for a card with a great introductory offer of 0% interest, or an extremely low interest rate for at least one year. This will help you save even more money.
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March 20th, 2008 at 6:32 am
Don’t forget about a balance transfer fee. You need to make sure that there is a fixed maximum amount, for example 50 dollars, or else a balance transfer may cost several hundred dollars.