If you have good credit, you pretty much have your choice of what kind of credit card to get. The trick is finding out the information needed to decide which card is right for you. How much credit you need, how much you can pay each month, and how much money you make will all be determining factors in your final decision on what card(s) you apply for.
Sorting them out:
Major Unsecured Credit Cards, such as Master Card, Visa, Discover, and American Express, are offered to people with very good credit. They have policies that allow little or no interest if the balance is paid in full each month. If any balance is carried over and left past the due date, the whole amount would be charged interest. In other words, if you use $500.00 worth of credit, and leave a $2.00 balance, you will be charged interest on the whole $500.00 that you originally spent. There are also monthly fees attached for going past the due date. The interest rate and monthly fees vary, depending on what financial institution issues the card, and what your credit rating is.
Reward Cards are credit cards that offer rewards for spending a certain amount on credit, or purchasing certain things on credit. The offers of rewards range from points offered toward prizes, to points towards airline fare (frequent flier points), to cash back awards. In order to find a reward card that fits your needs, do some research and find one that offers something of value to you. Make sure you find all available information on the card you may want, and read it carefully. The option of rewards is nice, but you want to make sure of what you have to do to get the reward.
Credit Cards for poor or bad credit are higher interest rate cards, and they will probably have a higher fee for being late. They are helpful when there have been financial problems that have lead to being late with payment- if the problems are over, and you want to bring your credit rating back up. If you are still in financial distress- avoid getting a credit card. When using credit to improve your credit score, make sure you spend less than your limit, and pay the credit card off within the month. If you don’t handle it properly, you will find yourself in a bigger problem than the one you began with. You will have another mark on your credit history, and more bills to pay off. Some examples of cards for bad credit, are Secured Credit Cards (require collateral and/or a security deposit), and Prepaid Credit Cards,(not really credit, but uses a card you pay for ahead of time; no finance charges, but may have a monthly fee or other fees attached).
The use of credit is convenient, and the ability to get good credit is important. As consumers, it is our job to make sure we know what we are doing, and use credit to better ourselves. Doing a little research can have results that make or break you in the long run. Make sure you sort through all the options available.
