Choosing a credit card can be a complicated task. Credit card offers are very easy when you come from your bank or your credit union. Today, credit card offers come from a variety of retailers.
The credit card business is such a business. As with any business, competition can be intense.
Interest rates, annual fees may vary greatly, and the terms offered by each card are not always the same.
Don't just accept card proposals based on your approval. If you do not understand these terms, doing so will cause great economic difficulties.
The following explains the types of credit cards available to many people. Make sure you understand how each person works and choose the type of card that best suits you.
Zero-to-low interest rate cards
These types of cards are ideally suited for transferring existing high interest rate balances. If you can pay off your transfer balance within a year, this may be your card.
These types of cards provide the lowest interest rates, which can save you a lot of money.
However, low interest rates usually return in a limited time. After the special offer period, interest rates rose to a normal 14% to 18%. In addition, if you are late only once, high interest rates can begin immediately.
If you choose to transfer existing high balances with this type of card transfer, please pay immediately or at the end of the "special promotion period" a higher interest rate may result in you paying more.
Reward Card
If you pay your credit balance every month, reward cards are great. If you have to pay high interest rates or high annual fees, cash back, mileage or points will not be important.
Also, make sure that you understand the exchange policy because the redemption strategy can be complicated and unfavorable or difficult (if not impossible) to meet the redemption conditions.
The key is to pay off the balance every month, so you don't need to pay a lot of interest.
Security Card
Secure credit cards are ideal for anyone trying to re-establish credit. Your bank or credit union may provide a secured credit card, so be sure to ask.
Please note that annual fees and application fees may apply, interest rates are high, and may vary widely, so you can purchase the best price.
You must also make an initial deposit on the security card. Your credit limit will be related to your deposit amount.
Student credit card
College students are careful! Students can easily qualify for these types of credit cards, and usually do not need to establish credit.
Most of these cards are high interest rates. Inexperienced students can quickly establish large amounts of interest and late fees.
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Orignal From: Credit Cards Are Not The Same - Choose wisely
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