Simplifying Your Search For a New Credit Card

Today, selecting the proper credit card can be a bit confusing to say the least. There are literally hundreds of offers from the major institutions eagerly competing for your business. The easiest way to shop for a credit card is to break them down into categories. There are seven major categories that all credit cards fall into. Each category is listed and explained below. Once you identify the proper category, simply narrow down the offers to the ones that best suite your particular needs and lifestyle.

General Purpose/Low Interest Credit Cards:

These cards are great general purpose credit cards for those not interested in all the special features and costs associated with CashBack or Rewards cards. They feature either a low introductory interest rate, and/or a low fixed rate.

General purpose credit cards are usually favored by those who tend to carry a monthly balance on their cards. A lower interest rate can add up to substantial savings on finance charges, and be of more value than cards offering high rewards, or cash back. If you are planning a large purchase, a low introductory APR may be just what you need. You can stretch out your payments over the length of the introductory period, and save a bundle on finance charges.

Cash Back/Rebate Credit Cards:

Cash Back credit cards give you cash or rebate incentives every time you use the card. The amount given is usually a percentage of your total purchases excluding interest and finance charges. Cash back credit cards should be considered by those who tend to pay off their entire balance every month, and therefore would not realize the benefits offered by low interest rate cards. Cash back cards are always hard to beat, but others may favor a rewards program offering goods and services in place of cash. The card you choose will depend upon your particular needs and lifestyle.

Reward Credit Cards:

Reward credit cards give you points every time they are used to make purchases. The points that you accumulate can later be redeemed for goods and services. Cards offering reward points are most attractive to those who tend not to carry a monthly balance. If you pay off all or most of your balance each month, a low interest rate will be of little consequence, making reward cards the perfect solution for reaping some extra benefits out of your spending dollars. There are many cards in this category that give special rewards as incentives to shop at specific retailers. Check the terms of each card to find the one that will best suit your needs.

Airline Miles/Travel Credit Cards:

If you're an airline traveler, you should look into credit cards that offer Frequent Flier miles. You earn Mileage points as you spend on your credit card. You also earn mileage points for the miles you fly. If you took a round trip to Orlando from Washington DC you would earn 1516 mile points. If you bought the ticket on your card you would earn even more! Most Frequent Flier credit cards will give you 5,000-10,000 free miles as a sign-up bonus, as well as discounts on car rentals, free hotel upgrades, and many other perks. Be aware that there may be caps on the amount of miles you can earn in a year, as well as expiration dates for unused miles.

Business Credit Cards:

If you own a small business then you should consider a business credit card. With a business credit card, you can make purchases under your business name, allowing you to separate your business and personal expenses. Business cards can in some cases carry a higher limit than a personal card, and additional cards may be issued to executives, or employees. Most institutions offer business cardholders a special categorized statement that makes it easier to manage your company's finances and spending habits.

Student Credit Cards:

Student credit cards are available to actively enrolled College students. They are ideal for building a credit history, and teaching the principles of financial management. After graduation, the credit history established with a student credit card can be a great help when buying that first new car, or even applying for a mortgage. It pays to start early and establish yourself as a responsible person by paying your bills on time. A student credit card usually carries some restrictions not found on ordinary credit cards. A co-signer is sometimes required on the account, and in such cases, permission from the co-signer must be obtained before the credit line can be increased.

Bad/No Credit Credit Cards:

If you have bad credit, or simply no credit history at all, there are alternatives to help you build/rebuild your credit. Many institutions offer secured, or pre-paid credit cards to individuals seeking to build or rebuild their credit. A secured credit card requires that you supply the institution with some type of collateral such as a car, home, boat, or cash. They will issue you a credit card secured by the value of this collateral. It functions just like a regular credit card, except that if you default the bank can seize the collateral.

Another solution is a Pre-Paid credit card or "Debit" card. Pre-Paid cards require that you deposit funds into the card's account in advance of making any purchases. When a purchase is made, the funds are deducted from the account balance. This is not really considered a credit card since no credit is actually being granted by the institution. Debit cards are a great alternative to carrying cash, and are hence much safer.

© Written By: Michael Casamento

Michael Casamento is the founder of the Credit Card Safari web site, offering quick and easy comparisons of the latest credit card offers from top financial institutions.

For more information visit:http://www.creditcardsafari.com

This article may be freely reproduced so long as the above resource box is included in its entirety.

---

The Right Way To Credit Repair

If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.Once you have... Read More

What Should I Do If I?ve Become a Victim of Identity Theft?

Identity thieves take advantage of everyday opportunities to discover your personal information and use it to commit fraud or other crimes. The good news is a victim... Read More

FREE Credit Report Offer - Careful, It Might Carry Hidden Charges

FREE credit checks or free credit reports. What are they all about? Why every second company on the Net is offering you a free credit report? Are... Read More

Legislators Ponder New Credit Protection Laws

Legislators in Washington, D.C. are considering several credit-related consumer protections as outlined in The Fair and Accurate Credit Transaction Act of 2003 (H.R. 2622). If approved, consumers... Read More

Credit Reporting: How Does It Work?

In order to determine a consumer's credit worthiness, creditors and lending institutions have come to depend on credit reporting agencies. Credit reporting agencies supply individual reports that... Read More

Student Credit Cards 101

If you're a college student, you probably already have a credit card. If not, you may have plans to get one or more soon. So why should... Read More

Credit Score: The Brightest Feather In Your Financial Cap

Credit scores are the most important aspect that determines your financial future. Carrying a good credit score is an asset and can pave your future towards greener... Read More

Beware of Bogus Credit Repair Companies!

So-called "credit repair" companies claim they can remove negative information from credit reports. Advertising as "Credit Advisors," "Credit Rating Correction Services" or "Credit Consultants," they trumpet variations... Read More

Good Credit Is a Necessity for Everyday Living

Most of us want a good credit report to obtain vehicle financing, credit cards for emergencies and luxuries, and to finance a home mortgage. However, beyond these... Read More

Credit Cards

Credit cards are a form of unsecured credit. The issuer is extending you a line of credit, usually tacking on all sorts of little surprises in the... Read More

Beat Credit Card Companies at Their Own Game!

Have you ever wondered how much money a credit card company makes? Have you ever wondered how much of that comes from late fees? Everyone has and... Read More

Credit Repair: How To Deal With Your Creditors

If you are in danger of credit problems because you have more debts than you can handle, there are things you can do at least keep your... Read More

Give Yourself Credit

The Beginning of the Credit Card EraIn 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New... Read More

A Debt Mentality

While working through my own debt situation, and helping others resolve their life issues regarding debt and credit, it never ceases to amaze me how similar the... Read More

Understanding Your Rights Under The Equal Credit Opportunity Act

It wasn't all that long ago that lenders blatantly discriminated when it came to approving credit for women and minority groups. Women were actually asked personal and... Read More

Credit Scores and Loan Applications

Keep Your Credit History Clean - Remove A Negative Credit Record From Your Credit ReportIt can make a difference of up to 18% in loan repayment costs.... Read More

Sound Advice For First Time Credit Card Users

If you are just entering the world of credit cards, there is important information you will need to know in order to manage your credit and your... Read More

Bad Debt Recovery

Bad Debt IdentificationIdentifying bad debt is not as easy as it sounds. But the earlier it is done, the better are chances of recovering it. Here are... Read More

Using Credit Cards Wisely

"I think money was stolen from my card" or "I might have blocked my card in the ATM" - these are frequent problems that bank customer-support officers... Read More

SuperCharged Secret 4, Credit Card Utopia

YOU SCRATCH MY BACK, AND I'LL BUY SOME MORE BEER!Let's just take a brief moment to recap:If you've been following along on this journey with me, learning... Read More

Recognizing the Signs that You Might Need Credit Counseling

Most families in America today have a credit card; some have two or more. The type of credit card you own, gold, platinum, ext, is almost a... Read More

How Creditors Measure Your Credit Rating

Creditors will measure your credit rating based on the following three main things.CapacityCollateralCharacterThe three "C's" show creditors your:"Capacity" or income to pay the debt"Collateral" or assets to... Read More

Our World Of Credit Cards! Which One Is Right For You

There are not many of us who do not have a credit card these days. But, not all of us are as wise in the area of... Read More

Credit Report ? Check Yours Regularly - and for Free

In the twenty-first century, there are few documents that have a greater impact on the lives of Americans then their credit report. Credit rating determines one's ability... Read More

Good Credit Is Not A Good Reason To Borrow More Money After Youve Achieved Financial Freedom

The most important thing for you to remember is that the only way you'll ever be able to achieve financial freedom is if you are able to... Read More

Tips for Choosing a Credit Card Company

Credit Cards are essential for any consumer today. However, when choosing a new credit card company, many people do not know what to look for. It is... Read More