Choosing The Right Credit Card For You

Credit Cards are a fixture in today's life. People from all walks of life
use them for almost any and every finacial transaction, from paying monthly
bills to purchasing items off the shelf at groceries and convenience stores.
No matter where a person goes these days, excepting perhaps for the absolute
remotest corners of the earth, credit cards have become as acceptable as
money, more so in some circumstances, because in foreign countries a credit
card takes care of the usual bother of having a lot of travel funds
converted into local currency.

But with so many different credit card providers out there, and each with
their own sets of package deals that offer different credit card rates and
advantages, how do you go about choosing one that suits your personal needs?
Here are a few simple things to keep in mind when selecting a credit card
that will give you the best rates for your lifestlye.

Look at the TYPE of card you'll need. While it may seem like a credit card
is a credit card, in reality there are many different types of cards
available, just as in a bank there are many different types of accounts,
each offering different features. Some of the more common types to choose
from are as
follows:

Student Credit Cards - As the name implies, these credit cards are designed
to cater to the needs of students. Since students generally operate with
limited personal funding, the credit ceilings offered by these cards is set
to keep purchases made by students within a reasonable level. Also, the
interest rates are set to lower levels, again because of the assumption that
the people who use these cards wont have as much financial capability. They
will generally be working part-time at best, so the rates these cards offer
tend towards the reasonable. The biggest drawback to a student credit card
is the credit ceiling; this, however, isn't such a drawback when you
consider that the lower ceiling also allows the users to preserve their
credit standing and not jeopardize themselves with overspending. If applying
for a student credit card, look for ones with reasonable interest rates
balanced with a credit limit that will keep expenses within the budget.

Business Credit Cards - These cards are tailored to be used by people
running a business. The main purpose of these cards is to be utilized in
place of a business owner using his/her own personal credit card to help pay
for the overhead costs of his/her business. Business credit cards generally
have larger credit ceilings than regular credit cards due to the expected
expenditures involved in operating a business. The rates for these cards,
and the corresponding credit ceilings, are usually based on the financial
status of the business entity for which the card is meant. When looking at
these cards, keep in mind the projected fiscal ability of your business. Get
a business credit card that can cover your overhead costs, and make sure
that the interest rates are also at a level that your projected income can
cover.

Zero-interest Credit Cards - these are credit cards that have 0% interest
initially. The name does not mean that the card permanently does not incur
interest; rather, these cards have an introductory period, usually
stretching between 6 months to a year, where no interest is incurred.
Regular rates are applied after the period is over, however, so it's a good
idea to look at the interest rates and available credit ceiling after the
initial introductory period expires.

Low Interest Credit Cards - these credit cards generally have a lower
interest rate than others; unlike zero-interest cards, which offer no
interest rates for an introductory period then switch to regular rates
afterwards, low interest credit cards maintain a lower interest rate on
credits incurred throughout the lifetime of the card. In the case of these
cards, look at other factors when choosing one; there may be annual fees
involved in maintaining the card, or lower credit limits, for example. Look
into these when deciding on a low interest card to apply for.

Reward System Cards - these are credit cards which possess additional perks
for useage. There are many types, including credit cards that offer airline
mileage points, hotel credit rewards, gasoline points, and even cash reward
credit cards.
When looking at one of these credit cards, the interest rates of the card
should of course be taken into consideration, but the main point is to see
if the interest rates are offset by the rewards offered. AS long as the
rewards suit your lifestyle, these cards make for a good option.

These are just a few simple tips covering the different types of credit
cards available on the market. When choosing a credit card, finding the best
credit rate isn't just a matter of looking for low interest cards; find one
that suits your lifestyle and needs, and the rest follows.

About The Author: Sue Hunt has written many articles on the credit card
industry and is the webmaster of a website offering information regarding
credit cards. If you are are interested in learning more about credit cards
log onto http://www.searchcreditdeals.com