How To Choose The Best Credit Card
This article explores the ins and outs of credit cards, how rates work and the application of applying for credit cards online.
What’s the thing that is most prominent on any credit card ad? Well, it’s the credit card rate (or the APR, as we know it).
The credit card rate is the most publicized thing in the world of credit cards. A lot of people just compare the credit card rate of various credit cards and just go for the one that is offering the lowest credit card rate (or APR).
Credit card rates are, in fact, one of the most important factors in the selection of a credit card (though not the only factor). Therefore, a proper understanding of Credit card rates is even more necessary.
So, what is a credit card rate or APR? Very simply, credit card rate is the rate of interest that the credit card supplier will charge you with on the amount you owe them.
The credit card supplier will charge you an interest only if you don’t make full payments in time.
When you receive your credit card bill, it specifies the full amount you owe the credit card supplier. It also specifies the minimum payment that you must make (by a particular date), in order to avoid incurring a late fee and other inconvenience.
You have the option of making either a full payment or just the minimum payment. If you make a full payment (by the due date), you are not charged any interest.
However, if you decide to go with the minimum payment or some amount that is lesser than the full amount, the credit card supplier will charge interest based on the credit card rate and the balance amount. This credit card rate is the interest rate that you agreed with them at the time of applying for the credit card.
The credit card rate or the annual percentage rate, as is obvious, is an annual interest rate. The credit card suppliers use this annual credit card rate to calculate the monthly credit card rate and then they calculate the interest on the balance amount that you owe them.
The balance amount here is simply = Full amount – (payment made by you). This interest is added to your balance for the next month (at the time of next billing cycle).
If you again make a partial payment, the new balance is calculated again and the credit card rate (monthly one) applied to it for calculation of new interest; and it keeps going on and on until you make the full payment.
That’s how credit card rate acts in this vicious circle. Hence, credit card rate is termed as the most important consideration in choosing a credit card.
Next, we investigate how to apply online for a credit card.
With the fast pace of our everyday lives, we don’t have time for anything really. This is where the combined power of commerce and technology comes in.
The capability to apply online for a credit card is one such example. Yes, you can apply online for a credit card. The revolution behind providing you with the ability to ‘apply online for credit card’ is called ‘internet’.
You can not only apply online for credit card but also use your credit card to do online shopping (and get the goods delivered to your door at no extra cost compared to the local store).
So, it is possible to apply online for a credit card. To apply online for credit card, you just have to fill-in an application form that is presented to you on the website of the credit card supplier (who provides the capability to apply online for credit card).
This application form is very similar to the one you would have filled-in in person – the details asked are same and the processing of the application is same too.
You will find that a lot credit card companies encourage you to apply online for credit card. This is because they save on the costs related to salary of representatives, paper, etc.
Moreover, when you apply online for credit card, your details can smoothly flow into the database of the credit card supplier i.e. the manual intervention is minimal when you apply online for credit card. This will in turn lead to faster processing of your application.
Though it is not necessarily true, if you apply online for credit card, your credit card might reach you much faster.
Moreover, if you apply online for credit card, you save on all the time and hassle associated with approaching a credit card company etc etc. You can compare the credit cards (again online) before you apply online for credit card.
Some people don’t like to apply online for credit card. The main reason is their discomfort in giving out the personal information online.
One quick check, before you apply online for credit card, is to see if the website address of the page (where you are required to enter your details) starts with ‘https’.
‘Https’ indicates that it’s a secure website (you might also check if the security certificate is provided by a reputed organisation e.g. Verisign). If you don’t see an https, you should not apply online for credit card of that company.
Besides that, some people don’t apply online for credit card because they are not comfortable in filling up the form all by themselves.
In such a case, you might either not apply online for credit card (and apply in person instead); or you might just go through the form, note down your questions/problems and seek the answers by calling the customer service centre of the credit card company.
So, applying online for credit card is surely a good option.
New Foreign Markets Open Up For Credit Card Companies
Credit card issuers are seeing increases in credit card applications due to stronger foreign markets. In Mexico, the economy is recovering due to outsourced technology firms and manufacturing
companies. Credit card solicitors are targeting the new Mexican middle class with low interest credit cards.
According to an article By Marla Dickerson, Los Angeles Times Staff Writer
August 11, 2007, ‘over 22 million credit cards are in circulation in Mexico. Total consumer credit has doubled in the past two years. This increase is a major boost to credit card companies looking to expand in foreign markets.
Many big box merchants are advertising credit card applications in-store. Credit card companies typically partner with big box stores to increase the number of applications for credit cards.
The big box stores get a commission from each approved application. According to Patrick Montana of credit card offers website www.sparecard.com, this form of credit card advertising will increase the number of Mexican card holders to nearly 50 million in less than 2 years.
Credit card companies are always looking for new customers as 1 in 3 Americans have a credit card. According to quikonnex.com, the average US family carries a credit card balance of $5,000 to $8,000. Over $1,000 per family goes to credit card interest.
Over 90% of Americans disposable income is spent paying back credit card debt. These are huge numbers for a country with the greatest economic growth in the world.
Foreign markets such as Mexico and China which are fast growing will allow credit card companies to tap into a new type of consumer.
This consumer will spend money on luxuries that he or she normally have never had access to. The growing foreign markets will allow credit card companies and merchants to tap into a burgeoning new market of potential credit card holders.
Russia is also a new emerging market for credit card companies. Many card companies were very successful in the USA during the 1990’s because they mailed solicited credit card to consumers.
The cards were ready to go and they had 2 levels. One level was for consumers with bad credit and the other level was for consumers with good credit.
This signup tactic was successful in part because the cards could be activated without going through the formal application process. Credit card marketers have always been successful in the systems they put in place to signup new customers in the USA.
Foreign markets may be trickier because credit card companies will have to formulate a marketing strategy that doesn’t offend the new era of middle class families.
Getting Approved For A Credit Card Online
When you hear the words credit card, you will usually think that it is a great equipment to use for shopping or buying things.
Besides, what other method can be very useful to buy things or services without you actually having the money to pay for it at the precise moment?
A credit card will tell you that you should forget about worrying over the things you want to purchase, you only have to worry about the monthly bills that will arrive.
A credit card is basically a loan from the credit card company that you have to pay in a monthly basis. So, if you need to purchase products or services but don’t have the money for it, a credit card is perfect for you.
However, before you consider getting a credit card, you also have to consider that it can relatively be very difficult to get yourself approved for one.
There are a lot of things that you should think about when applying for a credit card. First of all, you need to have a good credit rating first in order to get yourself approved for a credit card.
If you don’t have a credit history or if you have a bad credit rating, you will find it hard or even impossible to get a credit card.
But, because of the Internet, getting approved for a credit card is easier and much faster than ever before. Getting approved for a credit card online is faster and much more convenient that filling out those forms at home and sending it through “snail mail”. Through online application, you can get yourself approved for a credit card in no time at all.
Unlike the traditional way to apply for a credit card, you will usually have to wait for at least four weeks to hear from the credit card company and know whether you are approved for the credit card or not. Through online application, you can immediately know if you are approved for a credit card or not.
Another advantage when applying for a credit card online is that you can easily correct any mistakes you made in the application form by just pressing the backspace unlike in actual application form that will render the application form useless and will require you to start all over again.
You can also compare different credit cards easily through the Internet. By going to credit card websites, you can compare offers easier than the traditional way. You can shop around for low interest rates and you can also know which credit card is suitable for you.
You can also know the different introductory offers that a credit card company can give you in the Internet in no time at all.
If you don’t like the offer, you can easily jump from one website to another until you find a good credit card offer.
By applying for a credit card online, you can really know what kind of credit card is right for you and at the same time, know the best credit card offers.
Shopping for a credit card is relatively easy through the Internet. If you want instant approval, all you need is to apply for your credit card online.
Of course, just like any other forms of applying for a credit card, you will also need to have a good credit rating in order for you to get approved at a faster period of time.
What To Look For In a Credit Card Offer
When it comes to acquiring a credit card, there is a plethora of choices out there for any credit consumer. However this makes the process of browsing through the credit card offers and selecting the best one difficult for the average consumer.
To choose the best credit card offer you have to decide how you will be using your credit card and what options in a credit card contract are most important to you.
You have to take into account such things as the APR, reward programs and security options, among other items before selecting the best credit card offer for you.
One important part of the credit card offer is the APR. The annual percentage rate (APR) tells you the interest that will be charged on your credit card balance. Finding a low interest rate can save you a lot of money in the long run.
The Apr must be taken in conjunction with other factors of the credit card offer. For example credit cards that offer a reward program often charge a higher interest rate than cards that don‘t.
If you are looking specifically for a card that allows you to earn air miles on your purchases, then you have the task of finding the low interest credit card that offers the reward program that meets your needs.
In addition to low APR, credit card offers should have reasonable usage fees. Many credit card offers have zero annual fees.
Credit cards issuers are heavily relying on the reward programs in their credit card offer to reel in customers. These rewards are based on the amount of use of the credit card and include programs such as airline miles, cash back, department store items and even free gas for your automobile.
Thus choosing the right reward program can allow you to work your way towards buying a new computer or getting a free ticket to the destination of your choice.
Again these rewards should be taken in conjunction with the APR to find out if the credit card offer is worthwhile.
Another part of a credit card offer is its security features. Most credit card offers today guarantee a great deal of security measures for consumers.
These include steps to prevent identity theft and lessening the liability of owners incase of unauthorized use of their credit card.
Different individuals will find different credit card offers best suited to their needs. There is no one best credit card offer for all consumers.
Therefore it is important to know how you will be using your credit card and then to shop around to find the most suitable credit card offer.
Be Smart With A Credit Card And Use It Wisely
Owning a credit card is something that can be a very positive thing… as long as it is used responsibly. There are many ways for people to use credit cards to their advantage,
but there are also ways for credit cards to get people into financial trouble. By following a few simple tips related to managing credit card usage, a credit card can be a very beneficial piece of plastic to own.
For anyone who has never before owned any sort of credit card and has never been loaned money, there will probably be very little information (neither good nor bad) on their credit report.
Without a credit history, it’s difficult for credit card companies to determine whether or not to offer a line of credit to a person. In this situation, the credit card companies tend to err on the side of caution and not offer a card.
However, if there is one credit card company out there willing to offer a credit card with a very small line of credit to someone with no credit history, that card should be immediately obtained.
It should be used very wisely to purchase a few low-priced items, and the monthly payments for that credit card should be made on time every month.
As time goes on, this sort of spending and monthly payment behavior will allow a credit report to grow with nothing but good marks.
A person’s credit score can continue to grow higher and higher when they can show the ability to handle and pay for their credit card purchases.
Over time, a person’s positive credit report will allow him or her to obtain either additional credit cards or credit cards which offer great interest rates and other types of benefits.
Don’t Charge Too Much
Just because a credit card has been obtained does not mean it should be over used or abused. If a new credit card has a credit limit of about $1,500,
it’s smart to keep the balance on that card significantly lower than the maximum allowed to be charged. So, charging no more than $1,000 – at the most – is reasonable.
A credit card company issues a credit limit based on how much they believe a person can afford. And, higher balances means a significant amount of interest must be paid on the balance, which can create an amount due that is unaffordable.
If the credit card is used to charge more than the available credit limit, the credit card company will issue an over-charge fee and the user will not be able to use the card again until some of the balance has been paid.
Don’t Pay Payments Late
When it’s time to make a minimum payment on a credit card balance, PAY IT! Payments should NEVER be late. Late payments can negatively affect a person’s credit report, and in turn, lower a person’s credit score.
Making payments on time, conversely, can help a person build a good credit history and earn a better credit score.
Knowing that a credit card bill will be received in the mail on approximately the same date each month, prepare ahead of time and make sure there is enough money in the bank to send AT LEAST the minimum amount due.
Keep Credit Cards Safe
In today’s world of being able to easily purchase items via telephone or the internet, it’s important to keep credit cards and credit card numbers in a safe spot.
If anyone non-trustworthy person were to get their hands on another person’s credit card, charges could be made to that card which were not authorized by the card owner.
While most credit card companies do not hold card holders responsible for unauthorized charges, it does not look good if this sort of situation happens more than once (at the most!) during a person’s lifetime.
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