Your Guide On Choosing a Credit Card To Suit You

Reach into your wallet or purse, pull out a card, swipe, and you're done. It is very easy to use a credit card. The problem lies in choosing a card ? and it has nothing to do with the picture on the front! Choosing a credit card that works best for you is vital to your credit rating. If you choose incorrectly, you may find yourself in deep debt trouble. Here is some basic, yet extremely important, information that will help you make the right choice.

Your Money Handling Habits

Choosing a credit card that is perfect for one person may be a dismal failure for you because your habits are different. When it comes to choosing your credit card, you need to look very closely and honestly at your habits.

For instance, do you typically carry a balance or do you pay off the card at the end of each month? If you answered "yes" then you will need to shop for:

# A low Annual Percentage Rate (APR). The APR the interest rate you will pay on any outstanding balances each month. The higher the rate, the more you will pay in interest charges.

# A fixed-low rate. This means that they will guarantee that your rate will stay low. Oftentimes, a company will offer a low introductory rate to get you signed up and then increase the rates drastically in 3, 6, or 9 months. The problem with a guaranteed rate is that an annual fee often accompanies it. You will need to decide if the lower interest rate guarantee is worth the cost of the annual fee.

If you will be paying off your card at the end of each month, you will not have to worry as much about a low APR since you will not be using it. And with no need for a guarantee, you may be able to avoid yearly fees. However, you will want to be sure to get a card with a grace period.

# Grace Period: Be careful to get a card that allows you to pay off your bill at the end of the month with no finance charges. Those that don't offer the standard grace period begin charging you interest the moment you make a purchase.

# Cash Advance Fees: Be aware that most cards charge interest, and sometimes at a higher rate, for cash advances and this charge begins with no grace period even if your card offers a grace period for purchases.

You also need to decide how reliable you will be when it comes to paying on time and keeping yourself under the card limit. If you are often late paying your bills or often do not know how much credit you have left, you will want to watch out for transaction fees and other charges. Many card companies charge a late fee and an over-the-limit fee. These can be substantial. Your best bet is to pay on time and keep under the limit, however, finding a card with lower charges is a good idea.

Here is another important question to consider when looking at your money handling habits: Do you use the card rarely, occasionally, regularly, or frequently? Those that use their cards for just about everything instead of using cash or checks will want to look for credit card protection. This way, if you lose your card or it is stolen, you will not be responsible for any purchases made.

Finally, consider the different benefit programs that cards are offering.

# Do you travel? Then consider a card with frequent travel miles as a reward. Or perhaps one that offers traveler's insurance.

# Do you use your card for large purchases like electronics? You may want to consider credit card insurance that will replace your equipment for a specified period of time if it breaks down or gets stolen.

# Are you saving to buy a new car? There are cards that offer new car rebates.

# Do you have a favorite charity? Many cards now support specific charities, universities, and organizations by paying the entity a specific amount with each purchase you make.

What matters most is to find the features that fit your pattern of spending and paying. Don't get fooled by the gimmicks or the advertisements. Know your spending habits, look at the small print, and choose the card that is best for you. With all the different cards available, you will be able to find the right fit for you.

Wesley Atkins is the owner of http://www.credit-cards-advisor.com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again.

---

Credit Report ? Look Out for Your Debit Report, Too

Most consumers are aware that there are companies that keep track of their personal financial transactions ? installment loans, mortgages, credit card accounts, bankruptcies and judgements. These... Read More

Credit and Banking Money Saving Services

The first rule when applying for banking and credit services is to always read the fine print and to understand all of it. Read up, take it... Read More

What is Credit Card and Debit Card Blocking?

Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit or... Read More

5 Killer Steps to avoid Credit Card SCAMS!

In August, 2004, the Federal Trade Commission issued their findings of a recent study, which showed that nearly 25 million adults were victims of fraud.Now, most importantly,... Read More

Are 0% Credit Cards Reaching Their End?

Are Credit Card companies starting to feel the pinch? We all know that the Credit Card companies make their money by charging us interest on the money... Read More

How Your Credit History Can Affect Your Life

Your credit history is an important aspect of your life. Maintaining your credit rating is very important to your future and to your lifestyle. A poor credit... Read More

Harassment of People in Debt by Creditors

HarassmentHarassment of people in debt by creditors or their agents is a criminal offence under the Administration of Justice Act 1970. It is often difficult to know... Read More

Credit Cards - A Blessing or a Curse?

Owning a credit card can be quite an advantage. Whether making online purchases, booking an air ticket or a hotel room on the phone or simply being... Read More

Free Credit Report ? Watch Out for Scams

Many people may still not be aware of an amendment to the Fair Credit Reporting Act (FCRA) that Congress passed last year. This amendment allows U.S. citizens... Read More

Reward Credit Cards: Get the Best Rewards Card Incentive Program

A good credit reward card can contribute to your retirement account, offer gas rebates, score theme-park or vacation tickets or take thousands off the price of your... Read More

Dont Fall for Credit Repair Scams

We've all seen the ads on television or in magazines, shouting, "Erase bad debt!" or "Remove negative entries from your credit report!" If you're a person suffering... Read More

What You Should Know About Credit Counseling

Credit counseling is a free service that many people with money problems have turned to in the face of financial ruin. Credit counseling companies negotiate with your... Read More

How Do I Establish A Good Line of Credit?

A line of credit, roughly defined, is the amount of credit that can be given to a borrower from a lender. Usually a contract or note of... Read More

Trade Credit: How to Determine if You Should Offer Net-30 Terms to Your Customers

What is trade credit?One of the major differences between consumer and commercial transactions is that most, if not all, consumer transactions are paid in cash or by... Read More

Annual Credit Report and Free Annual Credit Report

Getting an annual credit report review has been the advice of many financial managers as they guided their customers to be aware of all information on credit... Read More