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Finding the Best Credit Card Application

By: Bryan Dufresno

With literally hundreds of credit card applications to select from choosing the right one can be a daunting task. Seemingly, every credit card offer has some form of bonus or air mile program or cash back incentive to try to get you to choose their card.

The first thing you need to do is ask yourself some questions, like "Do you plan on carrying a balance each month?". Nothing is free as they say, and in general you will find that the credit cards that offer rewards and incentives will have a higher APR rate than other non - incentive cards. Missing a payment or paying late can have drastic consequences for you if you do not carefully look at what you are signing up for.

Do you like to save a little on your retail purchases by getting cash back from the merchant? Do you have a favorite hotel you always use when doing business travel? You need to ask yourself what you will be using the credit card for first and then select the offer to match your needs, not the other way around.

Will you be replacing your current card or adding a new one to your collection? A typical feature of most credit card offers is the ability to transfer your old card's balance to the new one. Some cards will allow you to transfer the balance for free and carry it at a 0% interest rate for a introductory period of time. Some will even allow you to carry the balance interest free until you completely pay off the balance - a handy feature especially if you are carrying a large balance on another card.

Reward Programs

There are an array of reward programs to choose from however there are three main categories, miles, points and rebates.

Airmiles - reward program that has discounted airfares and ultimately the potential for free air travel by using your credit card to make purchases

Earning free air travel sounds like a great idea, but people who do not check into the fees for these cards may be in for a shock when they get their statements. Air miles cards usually have a large annual fee associated with them offsetting the benefits one can garner from collecting air miles. If you are paying $100 per year to keep an air miles card and you don't use it much you can actually lose money.

If you are a person who uses your credit card a lot and pay your credit card bill in full each month then this type of credit card may be worth applying for.

Points - earn credit for retail purchases by using your card at selected merchants

Retail points programs are one of the most popular types of rewards offered. While each program may have slightly different options and merchant selections they all have one commonality; you earn points which can be converted to a dollar amount and used to offset a retail purchase at an approved merchant. A typical example is the "Gift Card" craze that seems to appear each holiday season.

These cards are designed for people who do a lot of retail spending. If you have a favorite store find out if there is a credit card that will reward you for shopping there.

Cash Back - receive up to 5% of your purchase back in cash when using your card for purchases

These cards offer the most straight forward rewards - Cash back in your pocket. The general cash rebate cards offer around 1% - 2% on all of your purchases. Yours saving a percent on everything you buy with the card. Some offer introductory cash rebate percentages as high as 5%.

There are also more specific rebate cards for gas, hotel, auto, etcThis is and excellent way to track and control spending while receiving a rebate on frequently purchased products or services

To fully take advantage of the incentives that come with your credit card remember when applying you should ask yourself: will I be paying my bill on time each month? If the answer is no, then perhaps you should look at a lower interest rate card rather than an incentive based one.

Article Source: Main Articles

Bryan is a financial analyst and can assist you with choosing the right credit card offers online. Choose your favorite rewards credit cards at Cardpick

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