Credit Cards - Choosing the Best Kind of Credit Card for You
Modern inventions and the market bring you many choices in terms of credit cards.
It is sometimes very hard to find what kind or type of card(s) might be best for you.
Also, what works well for one person might not be the best one for you, so it's important to take your own financial situation into consideration as you ponder your alternatives.
To assist you with the often-confusing task of choosing the best kind credit card for you, take a look at the following Pluses and Minuses of these kinds of credit cards.
• Student Card Plus - For students with no credit history.
Minus - Low limit and interest rates could be very high.
• Secured Card Plus - A lot like a regular credit card.
You can pay minimum payments at the end of the month instead of up front.
If you have good payment history, this can up your credit limit.
Minus - A deposit as collateral is required.
The sum of money you put down is the amount of your credit limit.
• Prepaid Card Plus - You can directly deposit money onto your card.
You avoid credit agencies.
Minus - Lots of fees.
• Store Card Plus - You have more time to pay off large purchases.
Minus - Possible above average interest rates.
Processing/financing fees • Gas Station Card Plus - Use only at certain gas stations.
This is great for keeping track of your gas expenses.
You can charge anything in the store on the card, including oil or snacks.
Minus - Shopping in the gas station convenience store is expensive, so limit your purchases of extraneous items.
The card is only good in the specified stations, not all gas stations.
• Rewards Card Plus - Cash back, airline miles, or other benefits each time you use it.
Particularly good for frequent flyers and others who enjoy traveling.
Minus - Some might consider the fact that the rewards are greatly reduced if the balance isn't fully paid off each month a 'big minus'.
• Business Expense Card Plus - Allows you to start your business easily.
Adds to your business' credit.
Minus - You may be asked to provide your personal credit history and social security number in order for the creditor to gauge whether you're a desirable candidate.
And, if the business defaults frequently on the expense card, your personal credit will take a hit.
To learn more about other personal finance tips, see the resource box below for a free 6 day finance eCourse and informative finance newsletter.
It is sometimes very hard to find what kind or type of card(s) might be best for you.
Also, what works well for one person might not be the best one for you, so it's important to take your own financial situation into consideration as you ponder your alternatives.
To assist you with the often-confusing task of choosing the best kind credit card for you, take a look at the following Pluses and Minuses of these kinds of credit cards.
• Student Card Plus - For students with no credit history.
Minus - Low limit and interest rates could be very high.
• Secured Card Plus - A lot like a regular credit card.
You can pay minimum payments at the end of the month instead of up front.
If you have good payment history, this can up your credit limit.
Minus - A deposit as collateral is required.
The sum of money you put down is the amount of your credit limit.
• Prepaid Card Plus - You can directly deposit money onto your card.
You avoid credit agencies.
Minus - Lots of fees.
• Store Card Plus - You have more time to pay off large purchases.
Minus - Possible above average interest rates.
Processing/financing fees • Gas Station Card Plus - Use only at certain gas stations.
This is great for keeping track of your gas expenses.
You can charge anything in the store on the card, including oil or snacks.
Minus - Shopping in the gas station convenience store is expensive, so limit your purchases of extraneous items.
The card is only good in the specified stations, not all gas stations.
• Rewards Card Plus - Cash back, airline miles, or other benefits each time you use it.
Particularly good for frequent flyers and others who enjoy traveling.
Minus - Some might consider the fact that the rewards are greatly reduced if the balance isn't fully paid off each month a 'big minus'.
• Business Expense Card Plus - Allows you to start your business easily.
Adds to your business' credit.
Minus - You may be asked to provide your personal credit history and social security number in order for the creditor to gauge whether you're a desirable candidate.
And, if the business defaults frequently on the expense card, your personal credit will take a hit.
To learn more about other personal finance tips, see the resource box below for a free 6 day finance eCourse and informative finance newsletter.
