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The Best Kind of Credit Cards

Posted In:  credit cards

A lot of people have multiple credit cards - including most of you that are reading this article. Truthfully, it has been rather easy to get credit cards in the past, so you will have some credit cards that are better than others. You know which of you cards have the higher interest rates and which ones are great. This means that some are costing you more than others. Here are some tips about how to get some really beneficial credit cards.

When you really think about it, a credit card is either helping you to save money, or it is costing you to have it. This makes the best credit card one that you owe no balance on - simply because this is the only way to avoid paying any interest. Apart from that, however, there is an even better way to save money on a credit card.

Rewards credit cards are a great way to save even more money. They do this by giving you a discount on your purchases above what the store will give you at the time of purchase. This can work in your favor - but it will work even better if your credit card gives you discounts on those items that you buy the most.

An example of this would be if you travel a lot for your work. You spend a lot of money on gasoline, restaurants, and hotels. The best kind of credit card for this person would be either a gas card, or a driver's card - depending on what benefits they are looking for. A gas credit card gives a discount on gas, and some of them also may give discounts on restaurants and hotels. A driver’s card may give you points toward the purchase of another car.

Before you go and rush to apply online for a new credit card, however, you need to think about something. Remember that a credit card company is a business, and, as such, they want to make money. They know that they will not make much from some people, but from others the profit will more than make up for those that they make no money from.

They make money two ways. First, they make money from people who rush to get a credit card because it gives "rewards" and they never think about the value of the reward. The second group that they make money from is those that love to buy and buy and buy - but they never pay off the balance of the credit card.

The truth is that on any kind of rewards credit card you will only benefit if you do two things - pay it in full each month and pay it on time. Many credit card companies are raising the interest rates on credit cards for the smallest reason - and sometimes they don't even need one.

You also want to remember that rewards credit cards will only give you discount prices for a limited time - generally up to one year. Some, however, will go as long as 15 months. After that, you get the regular interest rate on the credit card and your introductory offer benefits become null and void.

If you have existing credit card debt, then you also want to see if you can find a credit card with a balance transfer feature on it. These are harder to get now, especially if your credit score is not real good. For the best deal, you will want to get one that will give you either 0% interest rate, or one that is as low as possible. This will give you time to pay off as much as you can. It will help you, too, especially if you do not put any new charges on it.
 

 

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Comments

Re: The Best Kind of Credit Cards

They make money two ways. First, they make money from people who rush to get a credit card because it gives "rewards" and they never think about the value of the reward. The second group that they make money from is those that love to buy and buy and buy - but they never pay off the balance of the credit card.
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Nice post MikeV. I'd like to add a third way that one can make $ w/rewards CC. You can charge all of your purchases to one CC that gives rewards and have another back-up CC that you use whenever your "main" CC is not honored. This back-up CC must have a "rewards system" also.
 
Pay off your balance each and every month, and claim your rewards as a credit to your CC and lower your next statement amount by the amount of the rewards. This way you are using the CC company's money to pay them back for your purchases. Win-win-win~ all for you!