By David
With so many options available it can be a challenge to figure out what kind of credit card is best for you. Still, if we take a closer look at the different types of cards and how they work we should be able to help you find a credit card that is right for you.
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Types of cards
There are several different types of cards to choose from with different features and drawbacks. To help you find a credit card you will want to start by choosing one of these.
1) Prepaid Cards – a prepaid credit card is similar to a gift card except that you can use it anywhere that type of credit card is accepted. These types of cards are great for children just learning to use a credit card, or for making online purchases without risking all the money in your bank account.
2) Low-Interest Cards – Low interest credit cards typically have an APR of about 10.4% making them a great option for balance transfers from higher interest cards, or for using as an emergency card for things that will take a while to get paid off.
3) Rewards Cards – These type of cards typically have and APR around 15% but offer you rewards that make their use more enticing. These are best for short term borrowing for things you generally buy on a regular basis so that you can take advantage of the rewards while avoiding the higher APR by paying purchases off within the “grace period.”
4) Bad Credit Cards – These are typically high APR cards with low credit limits, intended as a means for those with bad credit to carefully rebuild it.
Other Considerations
Once you’ve decided on the type of credit card, you’ll want to look at some of the specifics of the cards in order to help you find a credit card.
1) Annual Fee – Though these are dropping out of common use some cards still have a yearly fee just for possessing the card. Unless the card comes with rewards or an APR worth the fee, try to find one without.
2) Interest Rate – This is probably the most important factor to consider. The lower the interest rate the less interest you’ll pay on long term purchases. Many cards will offer a lower introductory APR for the first few months. These are nice, but make sure you know what your APR will be after that so you’re not tricked into getting a card with an unreasonably high rate.
3) Rewards Programs – if you’re going with a rewards card make sure the card is offering the type of reward that you want. While frequent flyer miles may be a great reward for some, it’s not so enticing for those who never fly.
Get your card
Once you’ve decided on a type of card and found one with the perks you like and rates and fees you’re comfortable with, just apply and wait for their response.
Click here to compare 0% APR credit card offers and save. Free comparison tools.
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