How to Find the best Credit Card for your Situation

The credit card market invariably has some very appealing credit cards on offer featuring generous cash backs and long term introductory zero percent interest rates. In an ideal world anyone looking for a credit card would opt for the best deals but unfortunately they are limited to those with excellent credit scores. Before one even begins to seek out the most suitable card for ones situation it makes sense to acquaint oneself with ones credit score, in order to focus on cards which are likely to be obtained upon application. It is worth remembering that rejected applications will contribute to a negative on ones credit report.

Having determined which cards one is qualified to obtain it is then important to honestly assess the type of usage one will make of the card. If the intention is to pay the balance in full each month then the interest rate becomes immaterial. In such instances consumers should focus on other benefits that a card offers such as extended purchase protection, extended warranties, cash backs and rewards. Frequent travelers can benefit from credit cards that offer roadside assistance and travel insurance, or specific rewards cards tailored to air miles or travel benefits.

Consumers who intend to use credit, but may not be in a position to clear their balance each month, should concentrate on finding the lowest interest rate. This may be an introductory low offer but it is important to consider what the standard variable rate will be when the offer expires. It may be more prudent to seek out a card with a permanently affordable rate than risk the inevitable rise which will occur when an introductory low rate ceases.

Many consumers are on the look out for the best balance transfer deals in order to move accrued credit card debt to a lower interest rate. In such circumstances it is advisable to view the balance transfer card as exclusively for the purpose of paying down debt, and not as an invitation to additional spending.

When seeking a balance transfer card it is important to compare balance transfer fees in addition to interest rates. Depending on the level of debt involved it is also vital to consider the length of the offer and ensure it matches the intended repayment plan. In order not to be steered off course it makes sense to arrange a monthly electronic payment which will clear the debt in full within the allotted introductory period.

There are many consumers that have bad credit. Many want to obtain a new credit card in order to re-establish their credit reputation by demonstrating responsible use of credit. In such circumstances there are two options, namely credit cards specifically designed for bad credit or secured credit cards. Both can be expensive options as tend to levy high interest rates and annual fees. Secured credit cards are an ideal way of rebuilding credit history and the necessity of providing a security deposit instils the saving discipline.

The most important considerations if opting for a secured credit card are to ensure the provider reports to the credit bureaus, and that the fees are compared and understood fully. Those with no credit history at all may also need to utilize secured credit cards until they have established a credit history. Gradually one can move from secured to unsecured credit, with the advantage of the good financial habits that secured cards ought to instil.

There is no one credit card to fit all and it pays to be realistic about ones own situation and intended credit card usage before selecting a credit card. Always comparison shop before applying rather than responding to pre approved offers in the mail, as the individual knows their needs more than the card provider does.