Although you are reading an article on credit cards, you may or may not be currently thinking of applying for one. If you have a good reason, and know what you are doing, then a credit card can be extremely useful. However, if you don't have the best of credit histories, you do have to keep an eye out for card sharks who will try to take advantage of you. If you don't pay close attention and get the best deal available, you might end up paying as much as 23% APR, on a card with only a $300 limit! Yes, this is a real card, available from a bank in North Dakota.
If you have good credit
Just about any card can be owned by someone with stellar credit and a good income. Often someone with good credit gets offers in the mail and doesn't even have to go out and find a good one. However, the ones that come in the mail are probably not the kind this person wants anyway.
In fact, the best credit card can even be something usual, for example a rewards card from a grocery store. A surprisingly large number of grocery stores have partnered with a local bank to provide rewards cards that double as visa cards, and as a discount card as well. A few stores will also send customers coupons when they spend a certain amount.
If you have good credit, you'll also have an advantage in other circumstances as well. For instance, insurance companies are more likely to give you discounts, and you can get credit cards with lower annual fees- or even with none. This is all to reward you for keeping up a good credit score, which is not that hard to do.
With Bad Credit
Just because you have bad credit doesn't mean you should suffer offers like the one mentioned in the first paragraph. Often the best thing for you to do is apply at your bank for a secured credit card. This card will give you a low limit and require a security deposit from 25% to 100% of your credit limit, but will also give you an opportunity to re-establish your good credit. Once you have done that, often the banks will extend you more credit and remove the restrictions.
You will still need to take care, of course. With good credit or bad, it is unlikely that you really want to go with one of the cards offered to you through the mail. These are usually very bad deals, and if you want a credit card you're much better off going to your credit union or bank and getting one there. You may even find that they let you arrange for the card online.
You may have thought of getting a credit card if you don't already have one. You may have even received several offers in your mail. To find out if you really should get one you should look up online about the good and bad things involved with credit cards. Here are a few of the good and bad of credit cards.
The biggest pro to having a credit card is the ease of use. You can buy, swipe, and go. You no longer have to hold the line up at the grocery store writing a check. You can swipe your card and you're done. This may one of the best reasons for having a credit card.
Another great aspect of having a credit card is to be able to order online. Many people dread going shopping with the long lines and the time it takes to get to their favorite store, especially if it is an hour or so away. You can sit back, relax, and shop online at your favorite store.
Credit cards are now offering many benefits to having one. You can get cash back or store up points and get free travel miles and much more.
Another great aspect is the protection you receive that you do not have with checking accounts or cash. If someone makes a purchase with it, you will not be held responsible for it if it is lost or stolen. Check your rules for your credit card because some companies have a liability limit attached and a time frame to report it lost or stolen.
These are just a few of the great advantages to having a credit card. Now here are a few bad things with having a credit card.
One bad thing about credit cards is that if you can't pay the balance every month you will incur high interest charges.
If you make one late payment, some companies double or triple your interest rate without notice.
Stay away from two-cycle billing. This is where they calculate your interest by every two months and not just one month.
Check your grace period. This is the time they give you before they charge interest. Used to be 30 days now many have gone to 22 days. You never get any on cash advances.
Transferring balances may come with a high fee. Check yours before you do this.
Make sure no one gets your card number and security code because you could become a victim of identity theft. It has gotten easier and easier these days. With that in mind, the credit card companies have also beefed up their security as well. They are trying to stay well ahead of the cons.
Well there are a few of the good and bad of credit card ownership. You will have to decide if this is for you. There are many advantages to owning one, which one is what you will have to do research on.
Both Mammon & Albin Xavier are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mammon has sinced written about articles on various topics from Credit Cards, Family Travel. Author Mammon is an experienced banker, and an expert on . Click to see his web site on. Mammon's top article generates over 1300 views. to your Favourites.
Albin Xavier has sinced written about articles on various topics from Credit Cards, Debts Loans and Credit Cards. About the Author: is your one stop shop for finding the perfect credit card, secured credit card, and all your credit card needs.. Albin Xavier's top article generates over 22200 views. to your Favourites.