 By ASAP Credit Card - Copyright © 2008
Today's
consumers are presented with a wide array of credit card choices: low APR credit
cards, reward and rebate offers, cards with no annual fees, gold cards, platinum
cards, secured and unsecured offers - the list seems endless! So how do you choose
the right credit card with so many options? Here's what you should consider
when searching for the best credit card offers:
1.) Your Credit History
Your credit
history is the most important factor in determining whether or not you'll be approved
for a credit card. If you have good to excellent credit, it's likely
you'll be approved for any credit card you choose. But if you have no credit,
or your credit is poor, you need to be more careful when selecting an offer.
Good
to Excellent Credit
As
a rule of thumb, Platinum and Titanium cards are normally reserved
for people with excellent credit. If you have good credit, you may be able to
qualify for these offers as well, but you're more likely to be approved for a Gold or Classic card. With increasing levels of credit, individuals
receive increased benefits such as higher credit limits and lower APR's.
Poor Credit or No Credit
For
individuals with poor or no credit, several types of credit card offers are available.
Although they tend to have higher interest rates (and additional fees) when compared
to 'standard' credit cards-- these offers are an effective way to build or improve
your credit:
- Unsecured
cards do not require a security deposit. These 'traditional' types of
credit cards are normally reserved for people with good / excellent credit. But
there are a few exceptions at ASAP Credit Card.com.
- Secured
credit cards are available to most individuals. Unlike unsecured offers,
they require a security deposit (normally between $150 and $300) to receive approval.
Your credit limit is based upon, and normally equal to the amount of your deposit
- Prepaid
debit cards are also available as an alternative for those with poor credit.
They operate on a 'pay as you go' basis and are accepted anywhere traditional
credit cards are accepted. Although most prepaid cards won't help build your credit
history, there are several offers which provide optional 'Credit Builder' programs
for a fee.
* Our Suggestion:
If you have poor / no credit, apply for an unsecured credit card first since no
security deposit is required. This will help you avoid funding the card with your
own money. If you aren't approved, you can try a secured or prepaid card instead. |
2.) Your Spending
Habits
When
choosing a credit card, you should also consider how you'll use it from day-to-day.
How often will you use the card and for what type of purchases? Will you pay off
the balance in full each month, or will you carry a balance?
If
you plan on making long-term purchases and carrying a balance from month to month,
you should probably consider a low interest or 0% APR credit card. This will help you save money
on interest charges and reduce the overall cost of the card.
But
if you use your card for daily purchases and plan on paying the bill if full each
month, you might be more interested in a reward credit card. Reward
credit cards tend to have higher interest rates than standard low APR credit
cards-- but you'll avoid the higher charges altogether if you pay your bill in
full before the grace period ends. This will allow you to earn extra bonuses and
perks from daily purchases you'd normally pay for with cash.
3.)
Your Specific Interests
Do you do significant
amounts of traveling, use a specific brand / service, or shop at a specific chain
of retail stores? Many credit card issuers will allow you to earn special rewards
for your loyalty and devoted service. Here's a few options to choose from:
Frequent Travelers
If you fly or travel
often, you might be interested in earning extra perks like free dining, rental
cars, hotel stays, airline tickets and more. An airline
mile credit card will provide many useful benefits if you travel frequently.
Long-Distance Drivers
Do you drive long
distances to work or make regular trips in your car? Then you could benefit greatly
by using a gasoline credit card. Earn cash
rebates from all your gasoline purchases or earn points for merchandise, gift
cards and more.
Dedicated Shoppers
If you're a frequent
shopper, or prefer a certain retail store or brand of products, many companies
will allow you to earn extra rewards. Cash back credit
cards allow individuals to earn cash back, rebates and other bonuses. In some
cases, they offer increased incentives for purchases on certain brands or products. |
Before
You Choose:
Before you choose a credit card,
make sure understand all 'terms and conditions' associated with the offer. Consider
the annual fee, finance charges, balance computation method, and whether or not
there is a grace period for purchases. To learn more, see our article on Important Credit
Card Terms for more information on these and other important credit
card terms.
* For a quick overview of offers, see our credit card comparison charts >
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