Good credit cards are essential when you want to establish or rebuild good credit. However, there are many factors that can influence the cost of your card. Understanding them can help you make the best decision about which card is right for your needs. In this article, we’ll go over some of the factors that will influence both the cost and the ease of approval of your application.
Annual Percentage Rate (APR): This is the rate charged for using a credit card, expressed as a yearly percentage. Good credit cards often have low APRs, since they reward customers for good balances. Balance transfer perks are also a popular attraction, and these may affect the APR.
Cash Back Credit Cards. If you like to shop then you probably already know that cash-back credit cards offer great savings. These rewards may be in the form of cash, gift cards and airline tickets. To get the best credit card deals, it’s worth shopping around for the best incentives and transferring your balance to a low-rate card before you use your cash savings. Be careful that you don’t get carried away with the great offers – you may end up paying more than you need to.
Annual Percentage Rate (APR). Some cards charge an annual fee, others do not. Most companies prefer to charge an annual fee, since they receive small amounts of commission for each sale. If you’re a good customer, you may find that credit cards with no annual fee have higher service charges, less perks and fewer perks. If you’re looking for the best credit cards, pick those with no annual fee.
Foreign Transaction Fees. If you travel often, you will want to make sure you pick credit cards that offer the lowest foreign transaction fees. Many cards charge foreign transaction fees every time you use your card.
Compare Credit Card Balances. Before you apply for any credit cards, compare credit cards balances. You want to choose a card that has a lower interest rate and no balance transfer fees. Before you apply for any cards, compare credit cards balances to see which one has the least expensive interest rate and charges the least amount of interest.
Build Good Credit Scores. Most credit scores fall within the average range. To improve your credit scores, be a responsible card holder. When you pay your bills on time and maintain your balances, you’ll be able to rebuild good credit scores. After you’ve built good credit scores, you can apply for good credit cards and use them to purchase items and services that you want or need.
There are numerous other types of cards available, but these are the most common. If you have excellent credit and maintain it, you should not have any difficulty applying for good credit cards. Just make sure you check the terms and conditions before you apply so you know exactly what your payments will be and so you can find the card that is best suited to your needs.
Rewards are another type of credit cards. Some rewards programs reward consumers with cash back or with discounts at retail stores. Other rewards programs reward consumers with merchandise, air miles, or with a percentage point of savings. No matter what type of rewards program you choose, if you pay your bill on time and maintain your balances, you can build a positive credit score. After all, you won’t be building credit if you can’t keep up with your bills!
One type of card that rewards consumers is loyalty programs. These programs allow you to accumulate points, much like airline miles, and use them for purchasing products and services. Some of the more popular loyalty programs include gasoline price discounts, travel credit cards, rental car expenses, and travel-related services. The more you use your points, the more money you’ll save. As you accumulate your points, you can turn them in for gifts and perks.
Another one credit card benefits that will entice consumers to choose multiple credit cards is the ability to use them in conjunction with one another. For example, let’s say you have a gas-price discount card, but a travel credit card also has a rebate program. You can combine the two cards and use your travel card to purchase your gas rebates, and your gas credit card to pay your rental car expenses. Combining your cards in this manner will allow you to benefit from both the discounts and the rebates, if any, for as long as you maintain your balances on all three.
Traveling hacking, however, may not be something that you want to do every time you make a purchase. Not all credit cards provide this kind of flexibility, but for some reason, credit cards seem to have this perk whenever travelers see them. You must take the time, however, to check exactly which credit cards offer travel hacks before using them every time you plan to fly. If you find that one credit card does offer the benefit, then you should take advantage of it whenever possible. However, if you find that none of the travel cards give you this freedom of movement, then you need to keep your travel money within the same bank account that you currently use for other purposes. This will prevent you from paying fees for every time you use your travel card to buy something else!