When looking for a credit card there are many options you can choose from. Options range from credit cards with rewards points, to credit cards with airline miles, to credit cards with cash back offers, to credit cards with low annual percentage rates (also known as APR). Knowing what kind of credit card to get can be a mind boggling experience. Here are a few tips to help you in deciding what kind of credit card is best for you and your needs.
Student Credit Cards
For first time, student, credit card purchasers there are many options. Many companies offer student credit cards that are directed towards college age students. These cards have balances that can run anywhere from $500 to $2000. Additionally, these cards usually have a higher APR and charge more interest on purchases you make than regular credit cards. Many credit cards for students will also not require a cosigner on the card. This means that a college student can get a credit card without the help of a parent or someone who already has good credit built up. The biggest danger with students getting credit cards, though, is that they may not be able to pay them off. If you are a student who is looking to get a credit card, make sure that you have a job before you start looking. If you do not have a means of income to pay off your card every month, you should not get a credit card.
Prepaid Cards
A great option for many people looking for credit cards is to get a prepaid card. With prepaid credit cars you get almost all the perks of having a credit card. You can use prepaid cards at any location that takes credit cards, and you can use your prepaid card to get money from an ATM. The only thing that you will not get with a prepaid card is the ability to build up your credit. However, along with not being able to build up your credit you will also not have an APR, not have to pay interest on the card, and not have to pay monthly bills. Having a prepaid card is much like having a check card from your bank. The only difference is that, with a prepaid card, you do not have to have a bank account. Prepaid cards are great for those people who do not want to have a bank account, or for those people who want to have the functionality of a credit card without having to get a real credit card.
Credit Cards For Bad Credit
If you have bed credit there are also options for you. There are many smaller banks that offer credit cards for people with bad credit. However, these cards often have very high APR and interest rates. Another option is for those with bad credit to get a secured credit card. With a secured credit card, those with bad credit can put a down payment on their card. This down payment will then become the credit cards limit. If you make your payments every month on time you will get this payment back in about a year. Once you get this payment back your secured credit card will turn into an unsecured credit card.
Author Sam Jones believes that everyone should undertake a regular credit card comparison. He suggests that uSwitch.com site is one of the best resources for comparing cards and obtaining the best deals available
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