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Need A New Credit Card, Which Type Will You Choose?

Apr 1, 2008
Many people simply cannot live without a credit card, either for use every day, or even just the occasional purchase. These days, there are very wide selection credit cards available; this means you should be able to find the card that is suitable for your particular needs.

All credit cards are not the same, some will be more suitable for you depending on how you not make repayments, and you're spending habits. It is very important to find the right credit card for your circumstances, to avoid paying excessive interest every month.

Credit cards are popular because they offer flexible use and payment terms, they are very convenient. Especially when you don't have sufficient cash in your wallet. Unfortunately, they can also lead very quickly to a heavy personal debt, if not used correctly. That is why is essential to find the correct credit card to suit you.

In an ideal world, you will own a credit card because convenience and ease of use that it gives. You would pay the entire balance in full at the end of the month. That way, avoiding high interest payments accrued on the card, on any balance outstanding. You get the convenience of the use of a credit card in shops and restaurants, online and by phone, without the expense of interest on late payment fees.

That of course is all in an ideal world. In reality, most people pay off part of their balance every month and often just the minimum payment requirement. For people who take this route, one good option is to consider the so-called, rewards card.

With a rewards card, the user earns points every time the card is used, that way earning back a percentage of their spending from the credit card company.
There are also times when you need to spread out the payments on perhaps a more high cost item, in this case a zero percent card would be the best choice for these circumstances. These cards give you a much longer period that is free of interest, allowing you time to get money together to pay off your bigger item purchases.

You quite possibly already have several cards with reasonably large balance amounts. You will find the card companies are probably charging you are very high rate of interest. Therefore, you should consider switching to a zero percent balance transfer card. Thus avoiding the high interest rates of your the cards. You do need to take into consideration any costs involved, such as transfer fees they may be charged by these card companies. These fees may be as high as 3%, on any balance transfer you make.

If you use this card for balance transfers, you should not use it for purchases. The reason is that all payments you make go to paying off your zero percent balance. There will not be any money paid off anything you buy until after the zero percent balance has been paid off in full. This means you could be paying a high interest rate and any purchases you made on the card.

So keep in mind that the zero percent usually refers to balance transfers, a normal or even higher interest rates may be charged on any purchases you make. You need to read the small print when you apply the card to make sure you know what the situation is with purchase interest.

Although it is inconvenient, it is certainly in your interest to read through all the boring small print on the back of the application, or in the information sent to you with the card. This way it should be clear to you what the situation is with regards to interest rates, and any possible hidden fees.

Unfortunately, many credit card companies are experts at concealing aspects of interest and fees within a cleverly worded legal small print. If you are unsure call or e-mail, the company they are legally obliged to clearly explain any details that concern you.

The Office of Fair Trading has taken action to try to ensure that credit card companies make their fees and interest rates clear. In any agreement or correspondence, any problems with unclear jargon can be reported to them.

It is also up to you to do your own investigation, comparing fees and interest from several card companies to find the best and most suitable deal your situation.
The Office of Fair Trading is about to launch a new website that will have clear and concise comparisons between leading credit card suppliers. Enabling the public to make easy and simple comparisons to find the best card for their needs.
About the Author
Joe Kenny writes for Credit Cards Web, offering credit cards or onlystop.com for some great credit cards , for US residents with credit card debt visit Rebuild for debt relief
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