- Personal Finance
Choosing the Right Credit Card
Depending on how you use it, a credit card can be extremely useful or it can get you into a lot of problems. Whether your credit card is helpful or a problem for you, depends entirely on how you decide to use it. If you're not responsible about your credit card spending, no credit card is going to be a good one for you. However if you are able to hold your spending in check, you find you can get some good deals with credit cards and the card will be a useful tool for you to have. There are many different credit cards with deals, among them credit card transfer, credit card cash back, and credit card rewards, so choosing the best one for your individual needs can be confusing.
Cash Back Credit Card Deals
Some examples of credit card deals are those that offer you cash back. For example, every time you use your credit card to pay for specific items or services, you will receive a percentage of the total payment back. It could be that the card is focused on giving you cash back on fuel, so every time you fill your car with petrol and pay by credit card, you will get a percentage of the bill paid back. Before opting for a cash back credit card deal, make sure that you make a note of exactly what you will be getting cash back for. There is little point in the card offering you cash back on fuel if you do not have a vehicle of your own. Since every credit card has different offers, you should do your research carefully before choosing a cash back option.
Credit Card Transfer
Another type of credit card deal that is extremely useful if you are falling behind on your credit card repayments is credit card transfer. This allows you to transfer the debt of one credit card to another, and typically you will not have to pay any interest on the new card for at least a couple of months. Those who are behind on payments are thus given a chance to get back on their feet, as the first few months they will actually be tackling the balance of the debt rather than just paying off interest. Some even give a year of no interest, depending on the total transferred.
Credit Card Rewards
Credit card reward schemes are based on a points system: Every time you make a purchase, you receive a set number of points depending on the value of the purchase. When you have enough points accumulated you are able to exchange them for gifts. Most banks will give you a catalogue of the gift choices which is usually updated every month or two, or you should be able to view the gifts that are available online. Typically gifts include household appliances, travel vouchers, gadgets, and home furnishings. Credit card reward schemes can be misleading, so you should work out exactly how much each point is worth before you sign up for a credit card rewards scheme. One bank may give out some fantastic rewards, but when you calculate the points that are required you will realize that it will take an awful long time before you can obtain one of these rewards. While other credit cards may not have such interesting rewards, it might be a lot easier to obtain them.
Before choosing a credit card deal, it will help to evaluate your lifestyle. If you are behind in payments on a card, a credit card transfer with a few months of interest-free payments is very interesting. If you purchase many items on your credit card every month, a cash back deal may be the best deal for you. If you have just moved into a new home, and could do with some appliances or furnishings, a credit card reward scheme is likely the best credit card deal for you; you could buy the larger items using the card, and accumulate points for the smaller things.