Tips for Choosing a Credit Card Company - DOC by cmlang


									by: John Daley

Credit Cards are essential for any consumer today. However, when choosing a new credit card
company, many people do not know what to look for. It is important to have a good company
because bad credit card companies can lead users into quite a bit of trouble. Whether you are a
college student getting your first credit card, or someone looking to switch, choosing the
company and type is very important. These few tips should help make your decision easier.

1. Pay attention to interest rates. In truth, all credit card interest rates are ridiculous. However, it
is always a good idea to choose the best interest rate for your needs. If you think you may have
the potential to miss a payment or two, then a lower interest rate will suit your needs better than a
higher interest rates. If you are completely confident in your ability to pay credit card debts off
immediately, than interest rates should not be a problem. Always look for the median interest
rate. Credit card companies offering extremely low interest rates may have other hidden charges.
Extremely high interest rates are simply nonsensical.

2. The type of credit card must also be taken into account. Different credit card types have
different offers. Major cards like American Express, Visa, Master Card, and Discover all have
their positive and negative elements. Along with the type comes the credit card plan. Some credit
cards are designed for college students, and have special bonuses for grades. Other credit cards
offer reward points for shopping at a certain store. Always go for the credit card promotion that
fits you best. If you eat frequently at a certain restaurant, then maybe a credit card offering
reward points for that restaurant is a good idea.

3. Keep in mind the bank associated with the credit card, and the credit card companys policies
on security. Identity theft is a large issue and continues to increase. Be sure that your bank has
specific security plans to keep your personal information safe. In the event of credit card fraud, it
is always good to have a company with great identity theft policies. Some credit card companies
will work tirelessly to correct the identity theft problem and clear your name. Other companies
may not be so eager to give up their time and money to protect your credit status.

4. Lastly, keep in mind some tricks credit card carriers may employ. Some banks will attempt to
destabilize someone with good credit by sending their bills at different times. Other credit card
companies will offer great rewards, but have hidden fees and high interest rates. It is always
good to see a companys policy on late payment. Some companies will take advantage of a late
payment by raising interest rates drastically and severely injuring your credit. Never be afraid to
read the fine print of any credit card agreement, because you might find something that you dont
agree with.

Getting a new credit card can be scary. Credit is a big deal because it dictates what you are able
to borrow and do financially. However, with careful planning and decision-making, you will
surely get a credit card that is worth having.

This article was posted on September 10, 2005

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