Choosing A Good Credit Card For Your Needs
There are many different kinds of credit cards with their own different pros and cons; but what credit card is best for you? We will take a look at the different options available inside the U.S. Some credit cards nowadays have more fees than you can shake a spoon at. They vary from charges for late payments, to an annual charge just for being a member of a specific credit card, even fees that change over time, without notice.
Credit card companies will try to entice you with platinum, or other kind of special cards that they say you qualify for, but in reality you are paying an annual price to be able to increase your borrowing limit cap, or get extra points or airline miles. Visa and MasterCard are the two of the biggest credit card companies today in America. They don’t issue the cards themselves, but depend on banks to do it for them. Each bank will give you a different set of fees and incentives for using the bank-issued card. The banks make a cut of the money spent while you’re shopping, more so with a debit card. Some banks might try to keep all of this money for themselves, or they will give you rewards, or money back for using their bank issued card.
The first thing you should look for in a good credit card is the interest fees. You want to make sure you will have adequate time to pay off your credit balance without paying interest. Some companies, such as American Express, will insure your purchases. If a retailer gives you a problem, or if your purchase is lost or stolen, you may qualify to have it replaced or the balance reimbursed to you. Other companies offer their own unique services.
The second thing you should look for is what bonuses and extra features you can get. Some cards will give you airline miles, others cash back. Some cards give you discounts depending where you shop at, and other cards will have someone call you if there’s something suspicious going on with your account. However, the first priority should be getting a low interest card with no annual fee. A great alternative to credit cards are debit cards. In theory, they are the same, but debit cards are linked directly to your bank account; this means you have to pay no interest or fees, unless you overdraft. A overdraft is when you buy something, but don’t have the funds for it. Fees banks charge for an overdraft vary, but they are generally very expensive, up to 25 dollars for each overdraft purchase; so you will need to be careful of your account balance. You can purchase items online and even use a debit card as a credit card in participating retailers.
Whether you go for the low interest rate with no fees, the bonuses, or the debit option, make sure you read the fine print and don’t get fooled into signing up for a fast credit card and paying for a fee that doesn’t occur until the first 6 months or year.
Related posts
Finding A Good Credit Card
For the past 20 years, I have had a Discover Credit Card. When comparing this good credit card to other cards, such as Visa, MasterCard, American Express, the Discover Card experience is overall superior to the benefits offered by the other big three. Long before it was popular, Discover Card was the first to offer a cash back bonus.
As its popularity grew, its general acceptance by merchants has increased and continues to increase as of today. The only drawback to using a Discover Card is that some local businesses/merchants may not accept Discover Card. The reasoning is that the fees charged by Discover Card to the merchant are generally higher than other credit card companies.
American Express is a brand name which is a part of the American lexicon. Originally, American Express only offered one kind of repayment term; namely, the full balance would be due at the end of the month. It’s not one of the more popular first time credit cards.
After seeking its market share of credit card users slowly erode, American express introduced the Optima card which would allow you to make incremental payments over time. While the vast majority of merchants accept American Express, aggressive market tactics by Visa have on occasion frozen American Express out of certain markets.
The best example would be the advertisements for past Olympic Games which suggested you use the Visa credit card to purchase your tickets, because the ticket seller would not accept American Express. One additional problem with American Express which occurred was the increase in its fees charged to merchants when their customers would charge a purchase.
This did cause certain high end merchants, such as car dealers, to no longer accept deposits or charges on American Express. While American Express has improved its card benefits, it appears American Express is generally a half a step behind their competitors. Finally, you have Visa and MasterCard.
I am old enough to remember when these two credit card giants were not affiliated with any bank or other financial institutions and were simply Visa or MasterCard. Overall, a Visa or MasterCard is easier to use than American Express or Discover, inasmuch as the credit terms can be very competitive, and they generally have looser credit requirements for individuals who are trying to reestablish their credit.
Overall, which card you use is a personal choice. For me, it’s Discover Card. The idea that I always get money back, even if it is nickels and dimes, is better than airline mileage or points which only give you a source of products which Visa, MasterCard or American Express what you to buy.
Related posts
« go backRecent Posts
- Debt Consolidation Basics
- Choosing A Good Credit Card For You
- Two Things To Look For In A Good Credit Card
- Looking For A Reliable And Good Credit Card?
- A Good Credit Card For Traveling
- Applying For A Good Credit Card
- Choosing A Good Credit Card For Your Needs
- Fast Credit Card
- Finding A Good Credit Card
- Good Credit Card: Orchard MasterCard
5 Good Credit Cards You Should Not Close
Topics
First Good Credit Card
Recent Comments
- tomas1277 on Comparing Good Credit Cards
- chemgirl on A Good Credit Card You Can Trust
Posts Of Interest
Tags
air miles american express amex annual percentage rate apr rates banks chase credit card Credit credit bureau credit card bill Credit Card Companies credit card company Credit Card Debt credit cards credit rating credit report Credit Score good credit card hidden charges interest rate interest rates introductory rate MasterCard rewards Visa