The procedures as to how to avoid credit cards that do more harm than good are not particularly straightforward. Every credit card on the market differs from another in some way and there are a great many factors which can make certain ones appealing or less than appealing. All that anyone can do is learn what to watch out for in a positive and a negative sense from credit cards and apply this knowledge when making their selection.
Any type of credit card which charges the credit card account holder an annual fee simply for having the card is probably one to be avoided. This used to be a fairly common practise among credit card providers but has largely been phased out in the face of negative press and public outcry in recent years. There are some few companies, however, who still apply such a fee and it is always something to be established in the earliest stages of examining any credit card’s features.
Credit cards which charge an unusually high interest rate are probably the most obvious ones which do more harm than good, if the potential account holder is likely to pay less than their full balance off on a monthly basis. Particularly where the credit card offers no incentives to users, such a card would also be likely to be one best avoided.
The positive factors of what one should look for in a credit card include rewards which are given for using the credit card. These rewards may take the form of cash paid back to the credit card on an annual basis or may be represented by exchangeable vouchers for a retail outlet but they can mount up to a very significant level for someone who uses their credit card on an extremely regular basis.
Credit cards which offer interest free periods on purchases are also very attractive to those who do not intend paying their balance off in full each month. These credit cards will try to attract new customers by offering them a fixed period where they will not be charged interest on purchases made with the card but users should be aware that they probably will be charged a very high rate of interest for any cash withdrawals made using the card.
Those looking to change credit cards may be tempted by ones which offer zero percent interest on balance transfers for a fixed period. Where this period also includes zero percent interest on purchases, double the benefits may be obtained.
How to avoid credit cards that do more harm than good is therefore about recognising what to avoid and what to look for and using this information to choose the best credit card for the individual’s type of intended usage.