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[W695]Which Credit Card Is Right For Me

by Nick Davis, Nic

A key fact to grasp is that there is no single "best" credit card for everyone. Different cards are suitable for different purposes. Your aim should be to choose a card which fits your current circumstances and will meet your financial needs.

For example, if you are currently paying interest on credit or store cards, then you need a credit card which offers 0% interest on balance transfers for up to 12 months. You can then transfer your debts from your other cards to your interest-free card, and aim to pay off the balance before the end of the interest-free period.

If you don't have any current outstanding debts, you could opt for a card which offers 0% interest on spending for an introductory period (again, cards offering up to 12 months are available). Put all your everyday spending on the card during the introductory period, and put the money you would otherwise have spent into a high-interest savings account. At the end of the introductory period, pay off all your spending on the card and pocket the interest you have earned. Note, however, that you will still need to make whatever minimum repayments are required by your card issuer during the introductory period.

You could also opt for a card offering cashback. This is a popular incentive offered by many credit card companies. It means that for every dollar you spend, your card issuer will give you back a small amount, usually in a single payment made once a year. The amount returned is calculated as a percentage of your total spending, and typically ranges from 0.5% to 2%. Some card issuers pay higher rates of up to 5% for purchases in some categories (e.g. gas or groceries) or made through certain retailers. Over a year you can earn hundreds of dollars in rebates, but always pay off your balance at the end of every month, or your cashback benefits will be wiped out by interest charges.

Finally, if you need to borrow over a long period at a low interest rate, consider obtaining a lifetime balance transfer card. With rates as low as 5.94% APR, they are as cheap as best-buy personal loans, but you choose how long you take to repay your debt.

Having decided on the type of card you want, take the time to study the market and see what is available. Do not simply fill in and return the next credit card application form that arrives in the mail. Credit card comparison sites such as www.finest-credit-cards.com make this easier for you by listing all current card offers for you to choose from, and also have a range of articles offering unbiased advice and information.

What Kind Of Payer Are You?

The most crucial question is whether you are a person who clears the credit card every month or whether you always leave a balance on the credit card. If you pay up at the end of every month, then you can go for a credit card that offers an incentive. If not, then you need to look at the annual percentage rate (APR) on the card. If you know what your typical credit card balance is, look at the illustrations given by card issuers to give a guide to how much you might have to repay over time.

Taking An Interes

Even with interest rates, you need to be careful. Although your new credit card may come with a 0% balance transfer rate, this is not the only rate to think about. Look at the rate on purchases or other transactions to see what you might be paying. And remember that any payments you make are likely to pay off the transferred balance first, while any new spending accrues interest.

Hand in hand with the interest rate goes the interest-free period. This is the delay between spending money on the credit card and being charged interest. This can vary considerably depending on the card you choose. The interest free period can be as much as 56 days. And it's how you use it that counts. If you put major spending on the credit card after the statement date, you have a month till the next statement, and then a few weeks to make the payment. This can be a good way of managing cash flow.

Look At The Fees

There are three types of fees that count with credit cards. The first is the cash withdrawal fee. Many credit card issuers charge you for withdrawing cash at an ATM. These fees can be around 2% of the transaction. The percentage is even higher when withdrawing cash abroad. If you must use the credit card, then you're better off making one large withdrawal so you don't pay the minimum fee each time.

Getting Some Cash Back

Many credit cards offer annual cashback deals which are great for people who clear their balance every month, but not so good for others. If you don't clear your balance, the interest charged will wipe out any cashback gains. There are also reward points schemes that allow cardholders to earn money from their spending ? and spend it again with a variety of high street and online retailers.

Paying attention to these items will help you to choose a credit card that will match your financial situation.

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Both Nick Davis & Joe Kenny 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.

Nick Davis has sinced written about articles on various topics from Credit Cards, Credit Card Offers and Free Credit Report Score. . Nick Davis's top article generates over 8100 views. to your Favourites.

Joe Kenny has sinced written about articles on various topics from Mortgage, Credit Cards and Life Insurance. Joe Kenny writes for Credit Card Guide, offering the latest on , visit today us to apply for a. Joe Kenny's top article generates over 49500 views. to your Favourites.