|If more of us valued food and cheer and song above hoarded gold, it would be a merrier world. - J.R.R. Tolkien|
What To Look For When Applying For a Credit Card
There is literally a credit card boom phenomenon going on the market in general. The individual gets easily confused as to which option to choose: low interest rates? Or better one with 0% introductory APR? High credit limits? Lower credit limits? How will all these affect the credit scoring/report? All of these are questions which definitely need a good answer.
Nowadays, credit cards are in categories to suit each and every need: student cards, business cards, rewards cards for business people, low interest credit cards, balance transfer credit cards, instant approval cards and many more. That is why, first of all you need to see what type of card would really benefit you, and only after that seek to find an offer within that category. Also, another important criterion when looking for a credit card is to check the offers which suit your credit rating: cards for bad credit, cards for excellent/good credit, or cards for limited or no credit history. Financial institutions do take into account the credit history of a person first of all when tailoring a credit card offer: the better your credit rating, the nicer the terms you will be able to contract the offer. With a bad credit rating, you usually present a higher degree of risk for the lender, so higher “penalties” apply: high interest rates, lower credit limit, shorter credit term and so on.
The most important aspect of a credit card are the APR charged, balance transfer option, the eventual special offers (rewards cards), the free period, and the rate whether it is fixed or variable. It is unlikely that one will get an offer which comes with excellent terms on all of the presented aspects, but what you need to do is choose he card which best serves your interests. For example, if you wish to improve your credit rating, and you need to use a credit card in order to be able to improve your rating, then choose carefully. A card with a low APR would be perfect for you (ranging from 10.99%-13.99%), with fixed rates, and if possible with a 0% introductory APR for at least 6 months.
The special rewards cards would benefit you if you are a frequent flyer for example, due to the nature of your job. This way, contracting a low interest rewards (airline miles) card can save up a bit. Two very good offers presently are the cards offered by Capital One No Hassle rewards cards which rewards you with 1.25 points for each dollar spent on different purchases, the miles actually don’t expire, there is no annual fee you must pay and the annul interest rate is 13.99%, plus balance transfers are possible which is an option showing flexibility. The other good offer is that by Discover card named Open Road, which comes with a low 10.99% APR, up to 1% cash-back possibility for different purchases and has an introductory period of 0% APR for six months. The single problem with these good sounding offers is that you do need good to excellent rating in order to be eligible for these offers.
You can take advantage of the special offers of a credit card (points, retail, gas, hotel), any time you sign up for a Miles by Discover Card or the CITI Platinum Select card. Both cards come with very low interest rates (10.99%), and many flexible options for you to choose from: online account management, or 0 liabilities for unauthorized use of credit card are just a few.
Before you actually apply for a credit card, it is best that you make a thorough research among the available offers. Make sure you exhaust a lot of resources before you sing up/accept an offer. You need to be a good connoisseur of the credit market, so that you will be able to choose the best option indeed.
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