A Guide To Selecting The Right Credit Cards

When it comes to selecting credit cards, it may seem like a no-brainer. After all, as long as it's a major brand, the chances of a store not accepting it are slim. Beyond that, it may seem like a moot point. Such is not the case, as there are several factors that warrant consideration when making your choice.

The first, and most important, factor is the interest rate. Now, if you're the type who pays their bill in full every month, it will seem like a non-issue. That's all well and good, however, the interest rate shouldn't be ignored entirely. Things happen and it may not always be feasible to get that bill fully paid month after month. As such, it's important to find a card with a lower rate so that you can save money and pay off whatever balances you may accrue as soon as possible.

One might think that the available credit limit is a factor. Oddly enough, it usually isn't. As your available credit limit is determined by your credit score, there is no way of knowing how much you'll get. Some cards will give you a possible range, but most companies don't put that sort of information in the pamphlet. You'll occasionally hear whispers of cards that have no limit whatsoever. They are hard to come by and it stands to reason that your credit rating would need to be near perfect in order to qualify.

If you are already in debt, you might want to consider looking into cards that allow you to transfer existing balances. Doing so can save you a bit of money as most cards offer an introductory rate of 0% for the first six months. The timeline and the introductory rate will vary, but it will, most certainly be lower than whatever rate your current card is charging on that balance.

Another factor to consider is rewards; as some cards will offer incentives to get you to use the card more frequently than you normally would.

One of the more common rewards is airline miles. With these, each purchase you make gets you points that go towards miles that can be redeemed when booking a flight. Depending on how you manage them, you can even fly free. If you travel a lot, this can lead to a lot of savings. Even if you aren't a regular travel it is worth looking into as it will make taking that grand vacation you've been meaning to take a bit easier on the wallet.

Some cards offer "cash back". They'll take a small percentage of the total amount you've spent, and deduct that number from your balance at the end of the year, giving you a "refund" of sorts. The rate is usually around 1%, if not less, but often times, the rate will increase for purchases made at places like grocery stores or gas stations. It may not be much, but every little bit helps.

As you can see, there is a lot to take into consideration when browsing for a new credit card. It's important to browse carefully, lest you miss an opportunity to take advantage of a perk that you otherwise would not have been able to utilize. Sure, they are great for shopping, but they can do much more.

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