Ask any financial expert and they would shy away, maybe give you a gist or two but wouldn’t be able to answer the simple question “Which is the right credit card” to use. One size doesn’t fit all, and the same can be safely said when choosing a credit card is concerned. We are all individuals with varied interests, wants and needs, and hence the ‘perfect credit card’ as mentioned in various ads doesn’t apply here.
Rule the needs
Prior to applying for any credit card, here are a few questions which the end user of the card should answer;
- Would you be able to pay the ‘balance in full’ at the end of every month?
- Do you have outstanding payments to clear on other cards?
- Do you need a card to help with balance transfer?
- Do you want another card to spend on?
- What is your credit history like?
Types of cards
The ZERO percent purchase cards
These are credit cards meant for customers that want to make purchases but would pay back in instalments every month, and not in full at the month end. Interest rates on such cards can vary from one financial institution to the next, hence customers are advised to check and then apply for the same. This is a card meant especially for customers who wouldn’t be able to pay in full at the end of the month. The interest rate here would be nil as the name suggests, which means while the debt period is on, there is no interest to pay.
The ZERO percent balance transfer cards
These are credit cards for customers who have debts of mammoth kinds and for those who have cards that charge them high interest rates on the current outstanding balance. Look for cards that offer periods ‘interest-free’, and would charge clients nothing when balance transfers are done. Such cards have gained popularity in recent times and it makes sense to use them, why pay high interest on the existing one!
The REWARDS credit card
As the name suggests, the ‘Rewards credit card’ would pay you bonuses on the way you use the card. These are rewards that the end client can use, and can do away with out earned costs, for example the pesky annual fees.
The STANDARD credit card
If you would like a credit card in the pocket to use, and fully knowing that paying back in full at the end of the month wouldn’t be a hassle; then this is the card for you. The cards also known as ‘plain vanilla’ would be called so, because they come with no rewards or frills as such, hence the name. Interest rates on the cards are standardized but it would be wise to check with each of the financial institutions before applying for one of them.
To know more on how to best choose and use your card, it would be wise to speak with financial experts, learn from other user’s experiences online and spend wisely. Remember, the plastic card is not your source of ‘spending’, use it only for emergencies and pay back on time.