Not All Credit Cards Are Equal - Choose Wisely!

Credit cards are truly wonderful invention. It seems that everyone today has a credit card or two (or three or four). They offer increased buying power, convenience, and sometimes even rewards for using them. However, not all credit cards are the same. There are good cards, there are scams, and there are cards meant for different kinds of people. This article is meant to help you decide which card you should get. This is no substitute for doing your own research on cards and conditions, but it will hopefully help you to get started.

Which Card Is Right For The Average Person?

This question is almost impossible to answer. What card you should get depends on a lot of things. Your credit score, your income, and what you plan to use the card for are all important factors. Here are some basic things to look for. First, you need a no annual fee credit card with a low interest rate. If you get your free credit report and find you have a poor credit score you may have limited options in this area, but make sure to compare the various cards you consider for the best interest rate. Second, you should never apply for a card that does not have a grace period. A grace period is a twenty to twenty-five day period after each purchase in which you can pay back that purchase without any interest. Grace periods are essential to keeping financially healthy and avoiding ridiculous interest rates. Third, you should look for a card that offers any services that you need. If you need a balance transfer credit card or cash advances, do not assume that all cards offer these services. Ask a banker or look on the creditor's website to make sure they offer what you need in a card. If you look for those three things, then you should be able to find a decent card for you.

Which Card Is Right For My Small Business?

Here we have another subject entirely. If your business is incorporated, you should look into getting corporate credit (which is beyond the scope of this article), but for all other small business credit cards there are certain things to look for. The first thing you should do is make sure the card has a grace period. As I said earlier, these are essential to keeping financially healthy for the individual as well as for the business. Second, most small businesses will benefit greatly from a card with a rewards program. These programs offer you "points" for using the card to make payments. These points are redeemable for all sorts of things, but small businesses will be especially interested in cards that offer free gas, airline miles, or even cash back credit cards. A third thing to look for, especially for the new business, is the interest rate. A growing business often needs time to pay back its purchases, and a high interest rate can make for a very inconvenient burden. Look for a decent or low interest rate, even if it means paying an annual fee, because businesses usually will end up paying enough in interest to justify that annual fee.

Which Card Is Best For Students?

Most students who are eligible for credit have little to no credit history. For this reason, their options in looking for a card are quite limited. It is best to make sure that the card is accepted by businesses and services you make frequent use of. The three main providers of cards in the United States are Visa, MasterCard, and American Express. Most locations accept two or even all three of these cards, but if they do not accept your card at the business you would use it at then there really is no point to having it. Interest rates are a touchy subject when looking for student credit cards, because most institutions have a low view of the average student's credit worthiness. It may be best to opt for a secured credit card until you have a better credit rating. You pay a deposit that sets the limit for your credit line, and the conditions of the card improve as you make payments on time. The most important thing for a college student credit cards is simply to not overuse it. Credit card debt, compounded by student loans, is a horrible way to start one's career.

Which Are The Best Cards For People With Bad Credit Ratings

If your credit score and credit history keep you from getting approval for most cards, the best option for you is a secured credit card. The deposit provides additional security to the creditor and allows you to get approval for much better cards than you normally would. In this case, the best advice is once again to not overuse the card. Improving your credit worthiness is a matter of patiently paying off debts on time and before interest sets in. Do not get a secured card and let it be your permanent card. They should be used until your credit rating allows you to get a better card, and then you should change cards.

What Is The Best Card All Around?

All things considered, reward program credit cards are the way to go. If you have the credit to get approved for one, you should definitely apply. These airline miles credit cards, travel rewards cards and other rewards credit cards give you a percentage of your purchase back in the form of airline miles, gas, store credit, or even cash. Make sure you look for a card with a decent interest rate, but most of these programs offer industry standard rates. Again, don't take a card without a grace period, but most of them offer one. The issue is simply having good enough credit to get one (which is not always easy).

Last Words

This article hopefully helps you to begin the process of choosing a credit card, but there are a few last points of advice you should hear. First, read all of the terms and conditions. Some credit cards companies are not entirely honest and forward with the facts. We all know it is tedious and boring, but it could save you money. Second, be careful how you use the cards. A bad credit history can put you in a financial bind for years, so do not let it get out of hand to begin with. Please visit our airline frequent flyer miles credit card offers section for additional information.

About The Author:

Don Willoughby is a successful author and regular contributor to http://www.e-credit-card-service.net. His websites provide research and applications for different types of low interest rate credit cards .