Saturday, May 16, 2009

Choosing the Best Credit Cards for You

The best credit cards for you are those trim to your individual financial needs and aims with low interest rates and, of course, those for which you will be approved. To happen out what you’re looking for, reply the following questions:

1. Bash you expect any large purchases in the adjacent twelvemonth (i.e. furniture, appliances, etc.)?

2. How long volition make you expect keeping the principal of a purchase on your card?

3. Bash you desire to pay your full balance every month?

4. Are you planning to utilize this card for purchases over a short clip clip period or make you mean to throw it for a long time?

5. Bash you currently have got credit bounds totaling more than than 40% of your annual income or balances outstanding on those cards greater than 50% of the credit limit?

If you answered yes to the first question, you will need a card with a high credit bounds and a low interest rate. This may look obvious but not all people need these things. You may make best getting a card with rewards attached to something you are interested in, like an airline miles card.

If you answered greater than three calendar months on the second question, you will need a low interest rate. Bash not be discouraged by a low credit limit. The interest is where you will salvage money.

If you answered yes to the 3rd question, you may be interested in determination a 0% interest charge card, such as as American Express. These cards will not charge you interest as long as you pay your measure promptly and in its entireness every month.

If you answered that you desire to throw on to your credit card in the 4th question, you should look for a moderate credit bounds and a low interest rate. If you answered that you be after to utilize this credit card only in the short term, then you should look for a card with an introductory 0% interest rate. These are best coupled with a program to pay off the balance by the end of the introductory term.

If you answered yes to either portion of the 5th question, you may have got some trouble securing new credit cards. Part of your credit score is determined by the amount of credit you carry and the ratio of the balance outstanding to the credit limit. Some banks are unwilling to allow further credit to those appliers whose credit scores are low owed to outstanding credit, even if you have got paid on time. The best credit card for you may be a card specializing in bad credit, regardless of how close you are to the acceptable credit rating.

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