As even the briefest search on the internet will show you, there are thousands of credit cards available from many different providers, and even more sites offering advice on which card you should choose. Most card advertisements and promotions make a lot of noise about attention-grabbing features such as market-leading low rates, long balance transfer deal introductory periods, or enticing cashback or rewards programs, but some or all of these features may be irrelevant to you no matter how good they look.
What really matters when choosing a new card to apply for is getting the card with the right mix of features to suit the way you plan to use it. To ensure that you get the best deal available it pays to take a little time out to think about the ways in which you normally use your card.
In today's increasingly cashless society, many people use plastic as simply a convenient payment method, clearing their balance in full every month. This frees them from having to carry large amounts of cash around, and makes it easier to keep track of their spending with online account management and the like. If this is the way you plan to use your card, then the interest rate doesn't really matter to you. Considering that you'll be clearing your balance every month, then you shouldn't be charged interest at all.
What's more important is to get a card that rewards you in some way for using it, either through cashback where a small percentage of everything you spend is credited back to your account, or with a rewards program that will allow you to build up points which you can later redeem to get cheaper goods or services.
If you plan to use your card to fund larger purchases such as home electricals, with the repayments being spread over several months, then the APR of a card is the single most important feature to look for. A low APR means that more of your repayments go towards clearing your debt rather than servicing the interest charges. This means that your debt will be cleared more quickly, and will have cost you less to take out in the first place. It may also be worth looking for a card which offers a long 0% introductory period on purchases, with many cards now offering a deal of 12 months or even longer.
The most common way of spending with a card is to have a mix of large and small purchases, repaying a reasonable portion of your spending each month but sometimes carrying a balance over if funds are a little short. It's also common to want to transfer a debt from a more expensive account such as an older credit card or an expensive overdraft. For this kind of mixed use, a relatively new kind of card can be a good fit.
A 'flat rate' card charges the same low interest rate for each type of card use, whether purchases, balance transfers, or even cash withdrawals. The low interest rate means that your credit costs less and can be cleared more quickly, and the simplicity offered by having just one APR for everything means you know exactly where you stand.
So no matter how impressive a new credit card may seem, with a wide range of eyecatching features, it really pays to decide which one to apply for based on your own needs and spending habits rather than the features that card issuers tell you are the most important!
Selecting the right low interest rate credit cards to suit your needs is not an easy task. There are many varieties of credit cards from the likes of Visa, MasterCard, and American Express to select from. It is also very important to select a credit card that can offer you an incentive and/or an awards scheme that is compatible with your particular needs. The best way to do this is to search for a credit card within the scope of a particular area that interests you. For example, say you are a Major League Baseball fan and would like to earn rewards and/or save money while participating in your favorite pastime. In this instance, the Major League Baseball? Extra Bases? Credit Card might be the best selection for you. With this credit card, The only credit card on the planet that earns you points towards autographed memorabilia by past and current players, VIP access, field-level game tickets, travel rewards and even cash rewards; you might be satisfied.
Remember, there are also a number of low interest and rewards credit cards to serve a number of folks interested in other sports as well. Take a look at the NFL Extra Points? Visa? Card for example. With this credit card you can perhaps earn a NFL Shield Short Sleeve Gray T-Shirt, or receive a Autographed Authentic Jersey - signed by a Former Player! The many types of rewards you can get with all the wonderful possibilities out there are seemingly endless. For just about every major sport there is a credit card rewards program out there.
I have often told many people that credit card rewards are living proof that you are already being charged to much interest. This stands to reason just as much as rewards are what you get for paying to much interest. Money saved is truly money earned as well. It makes perfect sense for one to reflect of the value of potential savings made from the reaping of rewards from credit cards. Many people however seem to forget that the credit card they select should bear them some sort of reward in the end. For example, if you applied for and received a Subaru? Platinum MasterCard? from Chase, but did not follow through with your planned Subaru Outback purchase, it is a safe bet to say you selected the wrong credit card as you will likely not come across any meaningful reward scheme. Not the card of your selection was bad at the time. For someone who is actually going to own a Subaru or does, this is in fact a nice card to have. It is just a simple fact that the cards we carry must fit a real world scheme in order to be useful, rewarding, and save us money.
It is also wise to be aware of the disclosures for the low interest rate credit cards you select. Back in 1988, new requirements were implemented for credit card disclosures that were intended to help consumers better compare pricing information on low interest credit cards (and all other types of credit cards for that matter). These new requirements mandated that credit card issuers use a tabular format to provide information to consumers about interest rates and fees on solicitations and applications mailed to consumers. It is very easy to find these tables rather quickly on just about any credit card offer you can come across on the internet. This format, which is known as the Schumer box is claimed by issuers, consumer groups, and others; to helped increase consumer awareness of credit card costs. With this information in hand, it is much easier to make informed decisions concerning finding the best low interest rate credit cards before completing the credit card application.
Both Michael D. Strauss & Sam Donaldson 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.
Michael D. Strauss has sinced written about articles on various topics from Credit Cards, A Secured Loan and Finances. Michael is a writer for UK site Card Sense, where you can compare. Michael D. Strauss's top article generates over 165000 views. to your Favourites.