Before we get into credit cards comparison, let’s talk about exactly what credit cards are and a little history.
When I was a young boy I can’t ever remember my Dad using a Credit Card. Credit and Credit Cards were frowned upon by most people. You were supposed to pay as you go. Credit was for buying a new house or a car. Other than that, if you didn’t have the money, you could wait until you did!
Now Credit Cards are important and almost impossible things to live without. You can use them practically everywhere. And everyone has them. They are convenient for shopping on line, ordering on the phone, keeping you from carrying so much cash, building your credit score, emergencies, and saving you money.
But just as they are useful, they can also spell disaster. In the hands of the wrong person they can ruin a financial life. They can ruin credit. Some people get so over extended that they can not get out of debt. When they fail at trying to fix the problem, they seek help from friends and then credit counselors. Sometimes they are even faced with filing for bankruptcy.
Credit Cards bill on a monthly cycle. The charges are interest free for the month incurred and then you usually have almost a month to pay them. This is of course if you do not have a balance. Typically the minimum payment is 2% or a minimum dollar amount if 2% is too small. If you pay only the minimum and then keep using the card you will probably never pay it off. Resist all temptation to carry a balance.
Now let’s get into the comparisons so you can see which one is for you. There are many different credit cards for many different uses. And they are constantly changing, so this list will be subject to change.
Standard Credit Cards
These could be balance transfer cards that allow you to transfer your balances from high interest cards to these with usually a zero interest rate. This rate is temporary and could last anywhere from a month to a year. Make sure you know!
Then there would be the low interest rate card. This could be for someone who wants to make a large purchase and pay it off at their own pace. Or perhaps for someone who usually carries a balance.
Rewards Credit Cards
These are may favorite. I use them to pay all of my bills, and any purchases that I make. It is easy to monitor and the rewards are fantastic. Do not use these cards if you can not pay your balance each month. It will not take much to wipe out the rewards and cost you money!
There are many different kinds, so you will have to do some research to get the best one or two for you. You may end up with one for gas and maybe another for everything else. Rewards vary from cash, airline discounts, online shopping, gift cards, and many others. I use Discover and they have specials every month. You may end up with a gift card to your favorite restaurant and save an additional 20%.
Credit Cards For Bad Credit
Secured have to have collateral. It could be in the form of cars, boats, jewelery, stocks, etc. And then there are prepaid. You pay into the card and that is all you can spend. These cards can help you improve your credit and allow you to have a card for emergencies, or perhaps shopping online or on the phone.
Specialty Credit Cards
They are coming up with different ones all of the time. A couple of examples would be business credit cards and student credit cards. This group of credit cards is tailored to the needs of these groups.
So there you have it. A good start. Comparison shopping for credit cards is very important. Make sure that you get what is best for your financial situation. And read the fine print before you sign up. In today’s world credit cards are almost a necessity. Times sure have changed!
To compare credit cards from various banks got to Credit Land. Make sure that the card you are carrying is right for you!