Credit Card Expert

Choosing the Right Credit Card

At times it seems as if there is no end to credit card offers, and many of us come home each day to a mailbox that is fairly overflowing with credit card offers. All of these brightly colored envelopes lie unopened, vying for our attention with brightly colored promises of cash back, airline miles and other enticements. Of course each of those offers is accompanied by additional terms and conditions, written in much smaller print and often difficult to decipher. Choosing from among all of these competing offers can be quite a difficult task, but it is important for every consumer to choose a card that best fits their needs. What Kind of Customer Are You? This is perhaps the most important question each consumer needs to answer before shopping for a credit card.

There are many different types of credit cards , but credit card customers typically break down into one of three groups:

 Those who always pay the entire balance, in full and on time

 Those who always carry a balance, and

 Those who strive to pay off the card but sometimes carry a balance Credit card companies hat the first group and love the other two, and which group you fall into has a lot to do with what type of credit card is best.

For those who always carry a balance, the interest rate should be the only consideration. Finding a card with a low interest rate should be your primary focus, and the ultimate goal should be to get that balance down to zero. Those who usually pay off the balance but sometimes fail to do so will need to examine their own situation. If a rewards card with a low interest rate is available, such a card may be a good choice. If the choice comes down to a choice between interest rate and perks, however, it may be best to forgo some goodies in favor of a lower interest rate. That is because a higher interest rate, and the resulting higher finance charges, could easily wipe out the value of any rewards. Those who always or sometimes carry a balance must also be on the lookout for additional fees and charges.

The fees for late payments and going over the credit limit can be very substantial, so it pays to read the fine print carefully. Those consumers with the fiscal discipline to pay off their credit cards in full and on time every month have the most choices when it comes to choosing a credit card, since the interest rate is of no consequence. These credit card customers are free to choose from among the myriad of offers and find the card that best suits their needs. Even these fiscally responsible consumers have a number of factors to weigh, however, including how they use their credit cards, what types of rewards they prefer and the spending levels required to get the best deal. For instance, many cash back credit cards have tiered levels of rewards, providing the highest cash back percentage only to those who charge a great deal of money on a monthly or annual basis. It is important for casual card users to examine their spending history in order to determine which cash back card is best. The same caveat is true of many other reward cards. Gift certificates, coupons and other goodies may well be tied to your level of spending, so be sure to read the fine print carefully. It also pays to look for a card with a good selection of rewards to choose from and a large number of bonus offers available for getting additional points toward those rewards. When it comes to credit cards offering airline miles, the key is to make sure that those miles will be easy to convert to free tickets when the time comes.

Soliciting the experiences of family members, friends, coworkers and others is one of the best ways to ensure that you will be able to leave the ground when you desire. It is also important to keep in mind that many airline-affiliated credit cards come with an annual fee, so it is a good idea to weigh that fee against the value of a free ticket. In some cases a good customer may be able to get the bank to waive the fee, and it never hurts to ask for such a waiver. With so many credit cards to choose from, many banks are willing to work with their customers to avoid losing them to the competition. Speaking of competition, the credit card industry has become so competitive that many issuers have resorted to offering truly exceptional perks simply for accepting and using their card. From 25,000 airline miles to $100 gift certificates to cold hard cash, there are plenty of great offers out there. Taking advantage of those offers can make your prudent spending and wise use of credit pay off even more.

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