Credit Card Incentives - Choosing The Perfect One

by : Nick Makaryk

It is a well known fact that there are so many different charge cards available today. In order to pick a good one that will work for you, choose one that reflects your lifestyle as well as your ideal spending limit. In order to find the best company and the best possible deal, you will need to do your research to find the perfect card for you.

When choosing one,, you will first need to decide what you need the for. Some people want a it simply for the purpose of cash flow. Making purchases can then free up your income. You can put that money in your bank account and let it draw interest. This allows your money to earn interest, all the while you are still able to buy the things you need. Then, when the bill comes in, you pay it in full, in order to avoid finance charges.

Instant cash purposes is another popular reason people get them. They are then able to use the credit card at any ATM to obtain cash. Using them for these purposes are great for an extended vacation or when traveling in general. If this is your sole purpose, make sure that you find one with the lowest instant cash transaction rate.

Just like any other financial obligation, it is always important to consider the monthly payments. You will either need to pay the balance off each month or make the minimum required payment. When choosing, be sure to look at the balance transfer rates, any introductory rates, as well as any incentives that might apply to new holders. Often at times, you can receive some amazing deals.

Getting the incentives are another important area to keep in mind. Many offer incentives such as reward points or cash back for certain purchases. Simply look around for good incentive programs that are appealing to your needs.

The APR or Annual Percentage Rate is another important area to look at. Whenever the incentive period ends, you will then pay the APR. Since APR vary, it is important to shop around and compare rates. The lower the APR is the better.

The minimum monthly payment also must be looked at. Often times, the companies require you to pay about 3% of your total balance. Some are considerably lower, while others require a considerably higher amount. Choose a credit card with the longest interest free period available. This will help to keep your monthly payments lower.

After you have done the research and know exactly what you are getting into, you can then choose one with ease. They can be a great thing to have. However, they can cause financial troubles if not used properly. If you do your homework, you will quickly be able to find the best one that is right for you. As long at you pay your monthly bill on time and take care of your it, you will increase your rating, allowing you to eventually make larger purchases, like a house or a car.