When searching for a new credit card, the most important factor to consider is how you will benefit financially. This benefit could come in the form of a 0% APR balance transfer or a rich credit card rewards program. Ultimately, however, the best credit card for one person isn't necessarily the best for everyone. Thus, here are some tips to help you avoid bad credit card offers and find the best credit card for you.
Tip #1: If you have credit card debt, get a balance transfer credit card: balance transfer credit cards provide a lifeline to people with credit card debt. Essentially, you pay a small three to five percent fee and in return you pay no interest for anywhere from a year to eighteen months (depending on what offers are available). Anyone with credit card debt being charged 13% or more should take advantage of these offers as soon as possible. Not only will they save you money on interest, they can also help you get out of debt much faster.
Tip #2: If you are about to go into credit card debt, get a 0% APR credit card: 0% APR credit cards allow you to pay no interest on new purchases for six to twelve months. Just how much you can save with a 0% APR credit card depends a lot on how you use it. To maximize savings, apply for a new 0% credit card just before making a large purchase. The clock starts ticking the minute your application is approved, so to save the most money, get a 0% APR credit card as close to the time of a big purchase as possible to save the most on interest.
Tip #3: Avoid most airline credit cards: The Delta Skymiles credit card and the Continental Onepass credit card offer free checked bags; every other airline specific credit card does not. Thus, unless you fly on Delta or Continental, you are going to pay a high annual fee and a high interest rate to earn miles that are difficult to use. However, if you do fly on either Delta or Continental at least once a year, the money you save on checked bags can more than make up for the annual fee.
Tip #4: Avoid most credit cards with annual fees: If you only spend a few thousand dollars a year on your credit card, paying an annual fee to earn credit card rewards is a waste of money. There are plenty of very good no annual fee credit cards available that offer cash back, miles, and points.
However, if you spend more than $10,000 a year on your credit cards, there are a few rewards credit cards that are worth the annual fee. One such card is the Capital One Venture Card, which lets you earn two miles for every dollar you spend. These miles can be redeemed at a value of one cent a piece on most airlines.
Tip #5: Always have at least one Visa or Mastercard and two credit cards: Discover and American Express top J.D. Power's annual customer satisfaction poll every year and are accepted just about everywhere in the U.S. However, it is very important to always have a Visa or a Mastercard just in case, especially when traveling abroad. And, because credit card companies might randomly cut your credit limit at any time, it is important to always have two credit cards just in case.
To compare offers and apply online, visit the credit card applications section of Card Wisdom
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