While credit card rates in general are a little on the high side these days, it is still possible to find competitive credit card rates. Luckily, online resources like search engines and credit card comparison sites make it easy to look at credit card features and terms and compare them. The comparison sites are the easiest to use, since they will show several different cards and rates side-by-side and let you look at them.
If you want to find a credit card with a competitive rate, use the FREE credit card chaser now!
When looking at credit card rates, it is important to make sure that they are regular rates, not introductory rates. Introductory rates are usually much lower than regular rates, but they expire after the introductory period is over, causing the rates to revert to a much higher regular rate. Another thing to keep in mind is that the rates are quoted for people with excellent credit, so if your credit is not excellent, you may end up paying a much higher rate.
There’s More to a Credit Card Than a Great Rate
While a credit card’s rate is very important, other factors can be just as important, depending on your personal needs. If you never carry a balance on your credit card, it will probably be much more important to you to find a card with no annual fee than a card with a great rate.
If you use your credit card for a lot of big purchases, a high limit will be important to you.
If you like to travel, you may want to find a credit card that offers airline miles for each purchase. If you drive a lot, a credit card that gives you discounts on gasoline or cash toward a new car in exchange for purchases may be the way to go. There are even different types of credit cards available for different situations.
There is a Credit Card for Every Need
When people talk about credit cards, they are generally talking about standard credit cards. About.com describes a standard credit card as a card that has a credit limit and allows you to borrow up to that limit. Interest is charged on the balance and you must at least pay some minimum portion of that balance each month.
A slight modification of the standard credit card is the premium or rewards credit card. The theory is the same, but these cards would offer some kind of a bonus for each purchase made with the card. An airline miles card, a card that gives cash back, and a card that gives you points toward the purchase of a car or other large item would all be examples of a rewards card.
A secured credit card is often used by people with no credit or bad credit, and it can help them to build better credit. It is different from a standard credit card in the fact that you are not borrowing money directly from a bank, but you are essentially borrowing your own money that you send to the bank to secure the card. These cards often charge low or no interest, and they allow you to have the convenience of using a credit card even if you don’t qualify for a standard or premium credit card.
A prepaid credit card is like a secured credit card in the fact that you load the card with your own money, but it is different in the fact that your activity is not necessarily tied to your credit rating, so a prepaid card may not help you build up your credit. These cards can be purchased in a variety of locations and while they don’t charge interest, they can have a variety of fees associated with them, especially if they can be reloaded.
Most Credit Cards Have Other Advantages
An article on the MSN Money website mentions a few bonuses that are available on most credit cards that you might overlook. For instance, if you use a credit card to rent a car, in most cases the card will provide an auto collision damage waiver, so you will not have to pay for damages in an accident, not even the deductible.
Credit cards may provide lost luggage replacement when used to book travel, and may even provide you with a free concierge service.
Credit cards also often provide purchase protection, so if you buy something with the card, it will be replaced if it is lost, stolen or broken. Items purchased with a credit card also often get their warranties extended free through the card company, too.
If you’re ready to start enjoying the advantages of owning a credit card, use the FREE credit card finder now!