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August 14, 2008
Comparing Credit Card Offers Demystified
How to Compare Credit Cards
Before you dive in and begin to compare credit cards there are a few things you need to know in order to find the best credit card offer. Each cardholder is looking for different features and benefits based on credit history and lifestyle. In order to find the best offer for your current credit situation and what benefits you desire you need to compare credit card offers by category.
I am always shocked to hear how much time people spend trying to figure out what credit card offer they want to apply. The reason people tend to get confused about card offers is largely due to the sheer volume of applications to choose from.
So let’s get down to the basics to help you select a card offer category to get you the best credit card deal possible for your situation.
Let’s start with this question:
Do you currently carry a sizable balance on an existing credit card?
If so, you should really consider a balance transfer credit card offering introductory rates of as low as 0% APR for anywhere from 6 months to 15 months.
The reason I recommend a balance transfer card for those people that carry large credit card balances is this can save you hundreds of dollars every month.
The next consideration you must take into account is where your current credit rating stands. If you have bad credit then you likely won’t qualify for a 0% APR balance transfer card offer so you will need to consider applying for the following card categories:
1. Prepaid debit card
It’s important to find out if any fees associated with a prepaid card are reported to the credit bureaus because you will want use this as an opportunity to build your credit score so that you can qualify for credit cards offering rewards and other perks.
2. A secured card offer
The difference between a secured card and a debit card boils down to this a secured offer holds a security deposit that you pay which the card issuer holds, however the security deposit is not used to apply to the balance you owe. A debit card is funded first and then you spend what you placed on the card.
The next thing you want to take into account is what the ongoing interest rates are, the biggest burden that cardholders have is high interest rates which cause a downward spiral effect because you are compounding interest month after month making the bank rich.
After consider ongoing APR’s the next feature you should look for in a credit card is the rewards programs available. My personal preference for credit card rewards are offers that give you cash back. Heck, cash is the best reward because you can use it for whatever your heart desires and best of all if you do tend to carry a balance you can use your cash back rewards to pay down the balance owing on your card.
Now that some of the confusion has been taken out of which credit card to apply for, take a moment to visit the credit card application section of Crediteria.com (click here) right now to find the best credit card offer for you.
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