There's a lot of plastic out there, and banks and other financial institutions are all trying to sell you their 0 balance transfer credit cards. And there are so many different kinds of credit cards on the market that it can be hard for a credit card user to know which one to choose.
Because of this, he often chooses the wrong card and then regrets it when his credit card account is already in trouble.
So, never get a credit card with a 0% balance transfer fee without thinking about some important things first. Here's a quick guide to help you figure out what kind of credit card you need to carry.
Tips on how to pick a credit card
Why do you think you need a new credit card? Is it because the interest rate on your current card is higher or because you only want to use it for your business, or is there another reason? Think about why you want a new credit card.
Once you know why, you should look into what kinds of credit cards are out there. Here is a brief dossier:
I Regular cards and business cards give you a limit on how much you can spend based on your tax forms. The business card is just like any other card, except that it has some plans on it that are like dangling carrots.
ii. Charge cards are cards that are linked to your bank account. When you swipe the card, the money is taken out of your account. With a charge card, you can't keep a balance from one month to the next.
iii. Reward cards are credit cards that give you points every time you swipe them. You can use these points to buy things at certain places, like plane tickets or groceries.
(iv) There are also credit cards for people with bad credit. These cards have a low amount you can spend and a high interest rate. v) Prepaid cards are another kind of credit card that most teens and some younger kids use. The parent puts money on the card, and it works as long as there is money on it.
Secured credit cards require the cardholder to put a certain amount of the credit limit into their bank account before they can use the card.
Compare different brands of credit cards once you've decided what kind of card is best for you. Compare their interest rates (APR = Annual Percentage Rate) and see if they have annual fees.
What kind of grace period or no-payment period they give you, how they figure out the interest, if the interest rate is an introductory rate, if the interest rate changes for cash withdrawals, billing cycles, balance transfers, and so on.
So, you're there! If you follow these simple rules, you should be able to get the right 0 balance transfer credit card for your needs. And that's the easy part. The hard part is keeping your credit card in good standing and keeping your credit history clean.
But that's a different tale!
