Choosing the Right Credit Card
When credit cards were first introduced in the early part of the 21st century, the choices were simple. You might be surprised to learn that some of the first credit cards were small embossed sheets of metal called Charga-Plates. These cards were issued by large-scale merchants and were often kept in the store for the authorized customer to use each time a purchase was made. The idea of creating a versatile credit card that could be kept with the customer and accepted by multiple merchants was not developed until the middle of the century.
Credit cards have come a long way since those days and so too have the choices they offer. From secured credit cards to low interest rates and rewards programs, the choices available to the credit cardholder can seem endless. Mycreditcard.org wants to help narrow those choices down for you and make the selection process simple again.
Choosing the right credit card is a bit like shopping for the right pair of shoes. Just like a pair of shoes, you need your credit card to fit comfortably, suit your specific personality, and most of all, be affordable. Following are a few things to keep in mind when shopping for the right credit card:
Spending Habits
One of the first things you should consider is how you intend to use the credit card. Do you plan to only use the card for emergency reasons or do you plan to use it for a variety of purchases? Do you intend to pay off the monthly balance in full or do you anticipate the balance carrying over from month to month?
*If you only plan to use the credit card for emergencies, you should look for a no-frills credit card that carries low fees and a low interest rate. On the other hand, if you plan to use your credit card for a large number of purchases each month you should consider a card with a large credit limit and rewards program.
*If you intend to faithfully pay off your balance at the end of each month, the interest rate isn't of much concern. You should look for a credit card that has no annual fee. However, if you anticipate the balance carrying over each month you should consider a card with a low introductory rate and a low interest rate.
Interest Rates
Look at the interest rate offered. Annual percentage rates can be fixed or variable. A fixed rate indicates that the interest rate will be the same each month. A variable rate may fluctuate from month to month.
Credit Limit
When looking at the credit limit of credit cards you should keep in mind that your credit rating can be damaged if you come close to maxing out your credit cards. You want to insure that the credit limit is enough to avoid maxing out.
Fees/Penalties
Make sure you closely examine all fees associated with the credit card and choose one with reasonable fees. You should also consider any penalties associated with going over your credit limit or late payments.
