Just as there are too many credit card companies to count, there seems to be just as many different credit cards, all claiming to offer you the best possible deal. Since no two people are alike, not all programs and incentives will work the same for everyone. Finding the one that works best for you is key to maintaining responsible credit card use.
Types of Credit Cards
One of the more recent additions to the credit card world is the low-interest credit card.
If you live anywhere in the U.S., you’ve probably already received information regarding this type of card. These cards offer a significantly lower interest rate than some of the older ones that you may already have. Also, most of these cards are also balance-transfer cards. They offer you the option of transferring a balance from a higher interest rate card and, for a specified period of time, your transferred balance will be at either 0% interest or something quite low. This can end up saving you a fair amount of money, particularly if your hope is to pay it off. Since credit cards have gotten to be such a lucrative business, many corporations have jumped on the bandwagon.
Even airlines now offer credit cards to customers that will come with a certain amount of frequent flyer miles attached to them, depending on your balance and purchases.
If you do a fair amount of traveling, this can be a real bonus. Along these same lines, reward credit cards are growing in popularity. Competition is stiff and many card companies are now offering you many different reward or incentive options for using their card. Once you accumulate enough points, the rewards will pore in. These can be anything from travel insurance to small appliances and anything in between. If you use a card regularly, finding one that has a reward program can really pay off.
Another form of credit card is the instant approval card.
Again, many of these applications come in the mail, some even by e-mail. These cards offer you the opportunity to apply for a card and receive instant approval, meaning no wait time. Once you fill out the application, a quick background check will be done and you will have your approval almost immediately. Other cards can take up to two weeks to process and approve your application. Although you can get instant approval, this does not always mean you can get instant credit. Some companies will supply you with a temporary credit card number and allow you to begin making purchases immediately, while other will not due to an increase in credit card fraud potential.
These instant approval credit cards can fall into 3 categories.
The type we spoke about in the prguaranteed-approval-credit-card.htmlevious paragraph requires good credit and can applied for online.
The others are Catalog credit cards and /or pre-paid credit cards. These credit cards not only provide instant approval but are not based on credit, so bad credit can be approved for these 2 types. With the catalog credit cards, they can only be used to purchase merchandise inside their catalog.
With pre paid credit cards, these are debit or gift cards that you add money to and they don’t actaually extend you any credit. These cards are great to send along with your college age children (if you don’t want them to have their own student credit card and establish credit under their own name). Some instant approval credit cards have a special feature called credit builder and can help re-establish credit.
Since there are so many options when it comes to choosing a credit card, do a little research before you apply.
Decide what type of card will best fit your needs and apply for that one. Don’t go over board though, applying for too many cards will negatively affect your credit score.
I was one of the many who signed up for my first credit card on a whim. I still remember it. It was a Victoria’s Secret card. I was approved for $500 right off the bat. The woman talked me in to it because I was paying $200+ on clothing in the store. She said to charge it and I will get rewards and all this. I paid it on time every month, and eventually, and quite quickly, I was upgraded to a VIP account. My limit was $1200 with in 4 months. I decided to use it for Christmas one year and had a good $800 I had to pay off on it. I ended up losing my job shortly after and was not able to pay it. What every you do, whatever card you choose, do it wisely. Just one card messed up my credit for years.