Tuesday, 8 May 2012

Best Credit Cards - How to Select One

Best credit cards can be confusing with so many options and choices available for the average consumer.

Credit cards have become a necessity in this day and age, especially with Internet transactions set to eclipse those from the high streets, and for those that can keep up with regular payments on their card, having a credit card can serve as a godsend, as well as a convenience.

The best type of card to obtain is from your bank or building society, where you have a checking or current account and have been a customer for sometime, as these are likely to give you an excellent rate as well as a good promotional period, since banks are always vying for customers with excellent credit ratings, consumers do get a great deal of promotional offers to pick a particular card, promotions that range from points which can be used as air miles, as well as shopping points and vouchers to redeem at a local grocery store, or even money off gas, with each year; and knowing that the promotional rate is about to end, the banks issuing these cards usually have some kind of promotional offer in the pipeline to keep their customers.

The interest rates on these cards are more often better than from banks which you do not have an account as well as prepaid credit cards, which act almost like a debit card, but you can only use the balance on the card.

The good thing about cards from your bank is they normally have a 0% interest period, whereby any purchases made on the card has a 0% interest for a certain time (usually a year to 15 months).

What certain people do to benefit from this interest free period, is after the promotional period is over; to move the balance on the card to another 0% interest card offering another 12 - 15 months 0% interest, and pay the balance transfer fee (which usually has its own promotional rate along with the promotional period for the 0% interest), or if they prefer not paying off the balance of the old credit card, for example if they would like to have the old card as well, move some of the balance of the old card to the new.

As long as you can pay off the balance in full when required, or when the promotional period is over, and surpass the minimum payment each month, a credit card can be a very nice financial alternative to having cash on your person.

For more about the subject visit Credit cards for bad credit

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