Good Credit Card Tips for Beginners
Author: BOBBY87
Posted: Mon Dec 12, 2005 7:21 pm
Post subject: Good Credit Card Tips for Beginners
Hello everyone, I am thinking about getting a credit card this week for the first time. any suggestions or ideas?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: astounding
Posted: Mon Dec 12, 2005 8:06 pm
Post subject: Good Credit Card Tips for Beginners
As basic as it gets, as a first time applier, you have no
previous credit history. Meaning that even though you can
easily get one (considering you have a job), you won't get
a high spending limit onto it.
But assuming that you already know that...
The easiest way to shop for a credit card is to break them down into
categories. There are seven major categories that all credit cards
fall into. Each category is listed and explained below. Once you
identify the proper category, simply narrow down the offers to the
ones that best suite your particular needs and lifestyle.
(Following excerpt is copyrighted. No copying allowed.)
General Purpose/Low Interest Credit Cards:
These cards are great general purpose credit cards for those not
interested in all the special features and costs associated with
CashBack or Rewards cards. They feature either a low introductory
interest rate, and/or a low fixed rate.
General purpose credit cards are usually favored by those who tend to
carry a monthly balance on their cards. A lower interest rate can add
up to substantial savings on finance charges, and be of more value
than cards offering high rewards, or cash back. If you are planning a
large purchase, a low introductory APR may be just what you need. You
can stretch out your payments over the length of the introductory
period, and save a bundle on finance charges.
Cash Back/Rebate Credit Cards:
Cash Back credit cards give you cash or rebate incentives every time
you use the card. The amount given is usually a percentage of your
total purchases excluding interest and finance charges. Cash back
credit cards should be considered by those who tend to pay off their
entire balance every month, and therefore would not realize the
benefits offered by low interest rate cards. Cash back cards are
always hard to beat, but others may favor a rewards program offering
goods and services in place of cash. The card you choose will depend
upon your particular needs and lifestyle.
Reward Credit Cards:
Reward credit cards give you points every time they are used to make
purchases. The points that you accumulate can later be redeemed for
goods and services. Cards offering reward points are most attractive
to those who tend not to carry a monthly balance. If you pay off all
or most of your balance each month, a low interest rate will be of
little consequence, making reward cards the perfect solution for
reaping some extra benefits out of your spending dollars. There are
many cards in this category that give special rewards as incentives
to shop at specific retailers. Check the terms of each card to find
the one that will best suit your needs.
Airline Miles/Travel Credit Cards:
If you're an airline traveler, you should look into credit cards that
offer Frequent Flier miles. You earn Mileage points as you spend on
your credit card. You also earn mileage points for the miles you fly.
If you took a round trip to Orlando from Washington DC you would earn
1516 mile points. If you bought the ticket on your card you would
earn even more! Most Frequent Flier credit cards will give you
5,000-10,000 free miles as a sign-up bonus, as well as discounts on
car rentals, free hotel upgrades, and many other perks. Be aware that
there may be caps on the amount of miles you can earn in a year, as
well as expiration dates for unused miles.
Business Credit Cards:
If you own a small business then you should consider a business
credit card. With a business credit card, you can make purchases
under your business name, allowing you to separate your business and
personal expenses. Business cards can in some cases carry a higher
limit than a personal card, and additional cards may be issued to
executives, or employees. Most institutions offer business
cardholders a special categorized statement that makes it easier to
manage your company's finances and spending habits.
Student Credit Cards:
Student credit cards are available to actively enrolled College
students. They are ideal for building a credit history, and teaching
the principles of financial management. After graduation, the credit
history established with a student credit card can be a great help
when buying that first new car, or even applying for a mortgage. It
pays to start early and establish yourself as a responsible person by
paying your bills on time. A student credit card usually carries some
restrictions not found on ordinary credit cards. A co-signer is
sometimes required on the account, and in such cases, permission from
the co-signer must be obtained before the credit line can be
increased.
Bad/No Credit Credit Cards:
If you have bad credit, or simply no credit history at all, there are
alternatives to help you build/rebuild your credit. Many institutions
offer secured, or pre-paid credit cards to individuals seeking to
build or rebuild their credit. A secured credit card requires that
you supply the institution with some type of collateral such as a
car, home, boat, or cash. They will issue you a credit card secured
by the value of this collateral. It functions just like a regular
credit card, except that if you default the bank can seize the
collateral.
Another solution is a Pre-Paid credit card or "Debit" card. Pre-Paid
cards require that you deposit funds into the card's account in
advance of making any purchases. When a purchase is made, the funds
are deducted from the account balance. This is not really considered
a credit card since no credit is actually being granted by the
institution. Debit cards are a great alternative to carrying cash,
and are hence much safer.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Mon Dec 12, 2005 7:21 pm
Post subject: Good Credit Card Tips for Beginners
Hello everyone, I am thinking about getting a credit card this week for the first time. any suggestions or ideas?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: astounding
Posted: Mon Dec 12, 2005 8:06 pm
Post subject: Good Credit Card Tips for Beginners
As basic as it gets, as a first time applier, you have no
previous credit history. Meaning that even though you can
easily get one (considering you have a job), you won't get
a high spending limit onto it.
But assuming that you already know that...
The easiest way to shop for a credit card is to break them down into
categories. There are seven major categories that all credit cards
fall into. Each category is listed and explained below. Once you
identify the proper category, simply narrow down the offers to the
ones that best suite your particular needs and lifestyle.
(Following excerpt is copyrighted. No copying allowed.)
General Purpose/Low Interest Credit Cards:
These cards are great general purpose credit cards for those not
interested in all the special features and costs associated with
CashBack or Rewards cards. They feature either a low introductory
interest rate, and/or a low fixed rate.
General purpose credit cards are usually favored by those who tend to
carry a monthly balance on their cards. A lower interest rate can add
up to substantial savings on finance charges, and be of more value
than cards offering high rewards, or cash back. If you are planning a
large purchase, a low introductory APR may be just what you need. You
can stretch out your payments over the length of the introductory
period, and save a bundle on finance charges.
Cash Back/Rebate Credit Cards:
Cash Back credit cards give you cash or rebate incentives every time
you use the card. The amount given is usually a percentage of your
total purchases excluding interest and finance charges. Cash back
credit cards should be considered by those who tend to pay off their
entire balance every month, and therefore would not realize the
benefits offered by low interest rate cards. Cash back cards are
always hard to beat, but others may favor a rewards program offering
goods and services in place of cash. The card you choose will depend
upon your particular needs and lifestyle.
Reward Credit Cards:
Reward credit cards give you points every time they are used to make
purchases. The points that you accumulate can later be redeemed for
goods and services. Cards offering reward points are most attractive
to those who tend not to carry a monthly balance. If you pay off all
or most of your balance each month, a low interest rate will be of
little consequence, making reward cards the perfect solution for
reaping some extra benefits out of your spending dollars. There are
many cards in this category that give special rewards as incentives
to shop at specific retailers. Check the terms of each card to find
the one that will best suit your needs.
Airline Miles/Travel Credit Cards:
If you're an airline traveler, you should look into credit cards that
offer Frequent Flier miles. You earn Mileage points as you spend on
your credit card. You also earn mileage points for the miles you fly.
If you took a round trip to Orlando from Washington DC you would earn
1516 mile points. If you bought the ticket on your card you would
earn even more! Most Frequent Flier credit cards will give you
5,000-10,000 free miles as a sign-up bonus, as well as discounts on
car rentals, free hotel upgrades, and many other perks. Be aware that
there may be caps on the amount of miles you can earn in a year, as
well as expiration dates for unused miles.
Business Credit Cards:
If you own a small business then you should consider a business
credit card. With a business credit card, you can make purchases
under your business name, allowing you to separate your business and
personal expenses. Business cards can in some cases carry a higher
limit than a personal card, and additional cards may be issued to
executives, or employees. Most institutions offer business
cardholders a special categorized statement that makes it easier to
manage your company's finances and spending habits.
Student Credit Cards:
Student credit cards are available to actively enrolled College
students. They are ideal for building a credit history, and teaching
the principles of financial management. After graduation, the credit
history established with a student credit card can be a great help
when buying that first new car, or even applying for a mortgage. It
pays to start early and establish yourself as a responsible person by
paying your bills on time. A student credit card usually carries some
restrictions not found on ordinary credit cards. A co-signer is
sometimes required on the account, and in such cases, permission from
the co-signer must be obtained before the credit line can be
increased.
Bad/No Credit Credit Cards:
If you have bad credit, or simply no credit history at all, there are
alternatives to help you build/rebuild your credit. Many institutions
offer secured, or pre-paid credit cards to individuals seeking to
build or rebuild their credit. A secured credit card requires that
you supply the institution with some type of collateral such as a
car, home, boat, or cash. They will issue you a credit card secured
by the value of this collateral. It functions just like a regular
credit card, except that if you default the bank can seize the
collateral.
Another solution is a Pre-Paid credit card or "Debit" card. Pre-Paid
cards require that you deposit funds into the card's account in
advance of making any purchases. When a purchase is made, the funds
are deducted from the account balance. This is not really considered
a credit card since no credit is actually being granted by the
institution. Debit cards are a great alternative to carrying cash,
and are hence much safer.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 10:56 AM
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