Credit Card Choices

Credit Card Choices

by Stuart A. McMaster

Choosing a credit card is not an easy task as you probably already know as there are many credit cards out there. The credit card that you choose should actually reflect your ideal spending limits and your lifestyle. If you are looking for the best possible deal when choosing a credit card, you will find that you need to look around a great deal and choose what will work best for you.

Why you really need a credit card in the first place is the very first thing that you need to know when you are choosing a credit card. Some consumers get credit cards just for cash flow purposes. Some people choose to get a credit card for cash flow purposes. With a credit card, you can make purchases and buy things, leaving your paycheck or other source of income in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then when the end of the month comes you simply pay your credit card bill.

Other consumers choose to get a credit card for the convenience of having instant cash ability. This way, they can use their credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is why you want a credit card, you should look for one that has the lowest rate possible for instant cash transactions.

You will also need to seriously think about the payments when choosing a credit card. You will have to make a decision about paying off the balance in full each month or just paying the required minimum amount. When choosing a credit card you should look at the balance transfer rates, the introductory rates and the many other offers that usually apply to new credit card holders. Some will offer you truly amazing deals, especially if you have good credit.

Another important area to look at when choosing your credit card is the incentives. Several credit cards now will give you incentives, like rewards points and even cash back with purchases that you can even use towards paying what you owe. There are several incentives out there with credit cards, all you have to do is look around and compare.

The main area you will need to look at and compare when choosing a credit card is the Annual Percentage Rate (APR). The APR is what you will pay on what you purchase when the incentive period runs out. APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. The lower APR rate you get, the better off you'll be.

Another concern with choosing your credit card is the minimum payment amount. Most minimum payment balances will start around 3%, although some can be lower while others tend to be quite a bit higher. The interest free period is a concern as well, as you will obviously want to choose the longest period that you can keep the payments down.

When you finally do make a decision on choosing a credit card, you should make sure that you are completely aware about exactly what you are getting. Credit cards are truly great things to have but they also can lead to your downfall if you don't choose them wisely.

If you take the time to do the proper research into choosing a credit card you can easily find the best one for you. As long as you pay your bill on time and take care of your credit card, you will raise your line of credit and eventually be able to make much bigger purchases like a car or even a house.