Whether you own a credit card that offers reward points, a credit card with a low ongoing APR or one with a 0% APR intro rate, it helps - and pays - to act smart with your credit card usage. If and when you own a credit card, it's not just simply a matter of swiping and paying off bills. There are ways to maximize the promotional offers and rewards of your credit card and we're here to teach you how to be a smart credit card owner.
The Zero Percent (0%) APR Intro Rate Credit Card - So, you've been approached by a credit card representative offering you this type of credit card, have you? He made it all sound so simple and wonderful, didn't he? Or maybe, you accidentally came across a credit card website and you found yourself mesmerized with the words zero percent.
Whatever the case, here's the truth about 0% APR intro rate credit cards - it's not what everybody needs. That's right. Even if it does promises to give you 0% APR on your credit card purchases, keep in mind that this is an intro rate we're talking about.
And this means that if the introductory period is over - and the coverage is usually between three to fifteen months, tops - then say bye-bye to your beloved 0% APR and say hello once more to the normal APR for credit cards.
A 0% APR intro rate credit card is best for people who want to transfer their balance from old credit cards and people who are planning to make expensive purchases and are able to pay them off before the introductory offer expires. When shopping for 0% APR intro rate credit cards, remember to ask about the duration of the introductory period, what the APR's going to be after the intro period and if there are any additional fees to be paid.
The Low Ongoing APR Credit Card - If you just want a credit card with a low or lower interest rate but you're not in the mood to buy a Tiffany jewelry set or a yacht then yes, you're better off with a low ongoing APR credit card.
Credit Card Offering Rewards / Reward Points - This is the most popular type of credit card. Although they have higher interest rates compared to other credit card types, if you don't mind paying more on finance charges in the hopes of winning something else later on then this type of credit card is the ideal one for you!
Essential Tips on How to Get a Credit Card
Banks and their marketing associates and divisions are vying with one another to capture a thick slice of the "credit card pie." Offers by phone and mail of free credit cards, pre-approved credit cards, cards with special bonanzas, money back schemes, low introductory rates, and umpteen other perks pour in tempting you everyday.
A credit card is just a form of borrowing that does not come free. Credit terms, interest rates, fees and more can lay a stress on your bank balance. Credit cards are a temptation to spend now and pay later. What invariably happens is that people spend more than they can handle.
Informed consumers must always weigh carefully the pros and cons and compare different options before deciding on a credit card.
Before you decide find out
The advantages of a credit card are that it is a safe alternative to cash. Prevents loss as well as theft of cash. Using a card wisely can build a good credit history which helps when you need a loan or subsidy. It is useful in emergencies like accidents, urgent hospitalization, and unavoidable circumstances like natural calamities and so on. It grants a breather and gives you time to pay the bill. Some memberships offer travel or accident insurance to the card owners at no cost. They also offer privileges like discounts at restaurants, shopping malls, and holiday packages.
The other side is that you can get carried away and live beyond your means, ultimately falling into debt.
To be eligible you need:
A credit card is just a form of borrowing that does not come free. Credit terms, interest rates, fees and more can lay a stress on your bank balance. Credit cards are a temptation to spend now and pay later. What invariably happens is that people spend more than they can handle.
Informed consumers must always weigh carefully the pros and cons and compare different options before deciding on a credit card.
Before you decide find out
The advantages of a credit card are that it is a safe alternative to cash. Prevents loss as well as theft of cash. Using a card wisely can build a good credit history which helps when you need a loan or subsidy. It is useful in emergencies like accidents, urgent hospitalization, and unavoidable circumstances like natural calamities and so on. It grants a breather and gives you time to pay the bill. Some memberships offer travel or accident insurance to the card owners at no cost. They also offer privileges like discounts at restaurants, shopping malls, and holiday packages.
The other side is that you can get carried away and live beyond your means, ultimately falling into debt.
To be eligible you need:
- To be at least 18 years old.
- Have some income or the backing of credit worthy parents.
- Have an operational bank account.
- A telephone.
- A good credit rating. Your monthly expenses must not equal or exceed your income. Ideal expenses must account for approximately 50% of your income.
- To get a Visa or Master card your income must exceed US$ 12,000 a year. Or, you need to apply for a secured credit card where you pay upfront a certain amount of money as security deposit.
Here are a few links that will give information and opportunities to apply for cards online:
- Visa at www.usa.visa.com/?country=us&ep=v_gg_new provides information, gives tips, and has listed a number of financial institutions that offer Visa cards and a wide range of services. One can apply for a card online.
- MasterCard International at www.mastercard.com/index.html is comprehensive with information, advice, and options of choosing and applying for a card online. They have an online form which when filled will give information of which card would be ideal and a channel which provides instant comparison of various card options.
- CreditCards.com at http://www.creditcards.com/ has articles, FAQs, a site map, and online application channels.
- Pick a card because it has the lowest APR.
- Pick a card because all its terms and conditions have been carefully vetted by you. Read the fine print.
- Never pick a card because it is free for a year or life.
- Do not choose a card because it offers a low introductory rate.
- Do not choose a card because it has a cash back policy or great rewards programs.
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