Criteria for a New Credit Card

by : Art Gib



Credit cards have revolutionized the way people shop. For example, with a credit card the need for checks and cash has decreased substantially and distance purchases are easier than ever. You have to be careful which credit cards you use though because some of them are definitely more costly to use than others.

Low Interest Credit Cards
Interest is one of the dangers that comes from using a credit card. If you are pretty good about making all your payments on time, interest rates may not worry you very much, but it only takes one absent-minded slip and late payment to find yourself penalized with a hefty financial consequence. Consequently, the lower the interest rate, the lower the danger of accruing large credit card debt. There are several low interest credit cards available, but the interest rate usually only stay low for six months to a year. This means you may have to keep switching cards to maintain a low interest rate account. There are other reasons you rates can rise too. For example, a late payment and the cost of lending money are two other factors that can raise your interest rates. Fortunately, a credit card company usually has to notify its clients before it raises its rates though.

Utility
Another feature you should consider before you apply for a credit card is its utility. After all, a credit card is only as useful as long as it is honored. For example, it doesn't matter how high your limit is on a card if a merchant refuses to accept that brand. Visa and MasterCard are two good choices for utility because they are widely accepted across the nation and the world.

Rewards
Some people choose credit cards purely for the rewards that they offer. These rewards can include anything from gas points, sky miles, vacation packages, and cash to rewards points which can then be exchanged for consumer products like bikes, games and electronic devices. Rewards can be very attractive and useful, but don't let them be the driving factor in applying for a card.

Extras Add Up
Other things to watch out for when you read over a credit card policy are additional fees. Try to avoid cards with annual fees, transaction fees or monthly fees. It probably won't be possible to find a card without late payment fees, but if you keep on top of your bills, those fees shouldn't