Choosing a Credit Card
This page is for those of you out there that have not or are not prone to racking up big balances on your credit card. It is also for those of you that have good credit and a credit card balance of $5000.00 or less that are looking to payoff your balance.
There are so many credit cards out there. Most of us just get one and this is what we use. Yet with a little homework you can actually get a card that is more appropriate for our needs and lifestyle.
Some for sure Do's and Dont's
- Do not have cards that have an annual fee. There are just too many comparable cards out there to be paying an annual fee.
- Stay away from instant approval deals. These usually come with high interest rates and almost never are a good deal.
- If you have bad credit stay away from credit card deals. You will only end up getting sucked deeper into debt.
Low Interest Rate Cards
The days of easy credit are hopefully behind us. If you have good credit and carry credit card balances you may want to Google "low credit card rates" to see if you can find a deal. Do not go for deals that offer a low interest rate for an initial time period. Such type of deal usually jack up the rate to a crazy percentage. Also, you can also call your credit card company and try to get a lower rate. Keep in mind that getting a new credit card or changing credit card companies can lower your FICO score.
Credit Cards that Pay Cash Back
As a consumer making purchases on your card offers you an added degree of protection for your purchases. If you are very disciplined with your money and do not carry credit card debt you may want to consider a credit card that pays you back cash. There are a number of cards that will pay you back as much as 3% for gas and grocery purchases and 1% for all other purchases. This can translate to a few hundred dollars a year, though might require you in some cases to change how you pay for your purchases.