How To Choose A Credit Card

Your credit score may just be a little number, but it packs a big punch. A poor credit score can keep you from getting a mortgage or a car loan. In addition, your credit score may haunt you for a long time if it suddenly drops. Of course, if you have a good credit score it opens a lot of doors for you. This is just one reason why it is important to think about which credit card you apply for before you do.

Every time you apply for a credit card, the company has to check your credit score. This is a bad thing. Numerous inquiries from credit card companies look bad on your credit report because it looks as though you are scrambling to open lines of credit, which can be a sign that you are struggling financially. Of course, this may not be the case. However, credit scoring companies all look at it the same way.

You can avoid scarring your credit score with credit card applications by choosing your card wisely. Choose a card that matches your lifestyle and works for you instead of against you. If you plan to pay off your balance each month, you might want a charge card instead of a credit card. American Express offers a number of charge cards with flexible spending programs that are perfect for people who plan to pay off their balance each month. They also offer some flexibility so that if you have an emergency you can use the card and pay off large charges over time. In addition most of their cards offer you reward points for using the card. On the downside, American Express charges an annual membership fee for having the card.

If you do not plan to use the card often, but plan to make large purchases on the card, which you will pay off over time you should get a revolving credit card, which allows you to carry a large balance over time. Of course there cards require you to pay interest on everything you buy. Interest expenses can get very high.

Other kinds of cards include:

1) A check guarantee card, issued by your bank, that you can use to ensure that your cheque will be honoured up to a certain limit.

2) A debit card, issued by your bank, where whatever you spend is immediately deducted from your bank account

Do you need a credit card?

a) A credit card means you don't need to carry huge amounts of cash around and risk losing it.

b) A credit card means you can buy items over the internet.

c) A credit card means you can make purchases abroad without having to worry about local currency.

d) A credit card gives the opportunity to spread the cost of a large payment over several months.

e) A credit card is useful in an emergency. For example, an unexpected repair to your house or car.

What You Need To Consider:

1) APR (Annual Percentage Rate)
This is the rate of interest that you will pay on any outstanding balance.

2) Special Introductory Rates
You may be offered a low or 0% rate of interest for a limited time (Up to 6 months) when you sign up for a new card. A higher rate of interest may be charged for cash withdrawals.

3) Balance Transfer Rate
Card issuers may offer you a lower rate of interest if your swap your balance from another credit card to theirs.

4) Interest Free period
Remember to check when interest payments will begin. Will you pay interest from the day of the purchase? Or will you have a number of days interest free before you begin to pay? There is usually no interest free period for cash withdrawals.

5) Cashback and Rewards
Some cards over points or rewards for every pound spent on the credit card. Make sure that these are appropriate for you. For example, there&'s no use collecting airmiles if you never fly.

6) Minimum Repayment
Remember to check what the minimum monthly repayment will be. If you borrow £1000 on your credit card the monthly minimum repayment will probably be in the region of £25. But if you only pay this amount each month it will take a long time to pay off the balance and cost a lot in total when you include the interest payments.

7) Annual Fees
This is the fee that the issuer will charge you every year for using their credit card. Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you.

8) Late Payments
There will be an extra charge, as well as the interest owed, if your payment is late. This charge may even be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time. A good way of doing this is to set up a direct debit from your current account.

9) Exceeding Your Limit
You may also be charged a fee if you exceed your credit limit.

Choosing the right credit card is a complex decision, but it can be made easier by using the free online credit card finders at http://www.creditcardbuzz.com.

Stephen Kelly is a financial advisor and the founder of Credit Card Buzz (http://www.creditcardbuzz.com). A free site with credit card reviews, ratings, analysis and online applications.

---

Top Stories - Google News Updated : Fri, 12 Mar 2010 01:24:40 GMT+00:00 Cost of F-35 Has Risen 60% to 90%, Military Says - New York Times ABC Online Cost of F-35 Has Risen 60% to 90%, Military Says New York Times The projected cost of Lockheed Martin's new Joint Strike Fighter has increased 60 to 90 percent in real terms since 2001, blowing well past a level requiring the program to be revamped, Pentagon officials said Thursday. ... Price of Lockheed's F-35 fighter soarsReuters Pentagon: F-35 fighter jet cost doublesThe Associated Press GAO analyst critical of Joint Strike Fighter program's cost overruns, delaysWashington Post GovExec.com -ABC News (blog) -Pensacola News Journal all 135 news articles » Publ.Date : Fri, 12 Mar 2010 00:44:48 GMT+00:00 NY AG Cuomo removes himself from governor probe - Reuters Reuters NY AG Cuomo removes himself from governor probe Reuters NEW YORK, March 11 (Reuters) - New York Attorney General Andrew Cuomo, a likely candidate for governor this year, on Thursday removed himself from ethics probes of embattled Governor David Paterson, saying he wanted ... Cuomo Will Recuse Himself From Paterson InvestigationsNew York Times Cuomo recuses himself from Paterson probesBuffalo News Cuomo hands over gov probe to former judgeamNY WNYC -WXXI -UPI.com all 302 news articles » Publ.Date : Fri, 12 Mar 2010 00:08:22 GMT+00:00 Reid's wife seriously injured in 4-vehicle wreck - The Associated Press Reuters Reid's wife seriously injured in 4-vehicle wreck The Associated Press WASHINGTON — Officials say the wife of Senate Majority Leader Harry Reid is in serious condition after a truck slammed into the back of the vehicle she and her daughter were riding on Interstate 95. A spokesman for the senator says 69-year-old Landra ... Sen. Reid's family injured in car accidentReuters Harry Reid's wife, daughter hospitalized after car wreckLas Vegas Sun Senator Reid's wife suffers broken back in accident7Online.com BusinessWeek -New York Times (blog) -Washington Post (blog) all 366 news articles » Publ.Date : Fri, 12 Mar 2010 01:03:39 GMT+00:00 Israel believes East Jerusalem row won't stop Mideast talks - Ha'aretz Times Online Israel believes East Jerusalem row won't stop Mideast talks Ha'aretz Prime Minister Benjamin Netanyahu believes that despite the crisis with the United States over the plan for new housing in East Jerusalem and the protests by the Palestinian Authority and Arab world, indirect talks with the PA will continue as planned ... Israel relieved after Biden speechJerusalem Post US says no indication of Palestinians quitting peace talksXinhua Despite Biden's plea, outlook shaky for Mideast peace talksMiamiHerald.com Reuters -FOXNews -Ynetnews all 1,286 news articles » Publ.Date : Fri, 12 Mar 2010 00:41:21 GMT+00:00 Health Care and Student Loan Programs Collide - New York Times Health Care and Student Loan Programs Collide New York Times WASHINGTON — The chairmen of the Senate and House education committees said on Thursday that they would fight to attach President Obama's proposed overhaul of student lending programs to the budget reconciliation package, ... Senate Health Bill Would Up Costs for Millions in Middle Class, Analysis FindsFOXNews Student loan overhaul seems likely to join Senate health-care billWashington Post Dems Dealt Blow on Health Care ReconciliationCBS News Wall Street Journal -Reuters -The Associated Press all 3,413 news articles » Publ.Date : Thu, 11 Mar 2010 21:55:03 GMT+00:00 Strong quakes torment Chile as president sworn in - The Associated Press CBC.ca Strong quakes torment Chile as president sworn in The Associated Press SANTIAGO, Chile — The earth shook and shook Thursday as dignitaries walked in for the swearing-in of Sebastian Pinera as Chile's president. It shook some more as they waited for him. People in the balconies of the vast congressional hall in coastal ... Chile appoints new emergency agency chiefXinhua Chile lifts tsunami alert on coast after tremorsReuters Strong aftershocks mark Sebastián Piñera's first moments in officeTimes Online The Guardian -AFP -Wall Street Journal all 1,681 news articles » Publ.Date : Thu, 11 Mar 2010 23:54:03 GMT+00:00 Obama gives away $1.4M Nobel prize - The Associated Press Daily Mail Obama gives away $1.4M Nobel prize The Associated Press WASHINGTON — President Barack Obama plans to donate the $1.4 million from his Nobel Peace Prize to helping students, veterans' families and survivors of Haiti's earthquake, among others, drawing attention to organizations he said "do extraordinary work ... Obama gives $1.4 million Nobel prize to 10 charitiesReuters Obama gives Nobel prize money to charityABC Online Obama donates Nobel Prize money to charityUPI.com America's News Online -ArmyTimes.com -BBC News all 565 news articles » Publ.Date : Fri, 12 Mar 2010 00:27:49 GMT+00:00 RSS Parser Increase Online Traffic

Ten Steps To Building A Good Credit History

Are you thinking of buying a house? Do you want... Read More

Credit Reports ? Why Your Credit Score is Important

If you have never heard of a FICO score before,... Read More

Understanding Your Credit Score

When you apply for credit one of the first things... Read More

Some Truth About Credit

Credit is currently and has been historically an integral component... Read More

Credit Report ? Check Yours Regularly - and for Free

In the twenty-first century, there are few documents that have... Read More

Start Building Credit Fast!

There are a couple of reasons for this. You can... Read More

Credit Card Disclosure Table ? Do You Understand It All?

In addition to the APR (annual percentage rate) and the... Read More

Useful Tips On Avoiding Credit and Charge Card Fraud

Credit and charge card fraud costs cardholders and issuers hundreds... Read More

Credit Cards: How To Use Them

Credit cards can be a very quick way of getting... Read More

Understanding Credit Card Penalties

Because most of us have one or two credit cards... Read More

Have You Ever Opened a Checking Account?

Maybe some of you are saving it in your trusty... Read More

Credit Establishment 101

There will come a day when you need credit. You... Read More

Borrowing on a Credit Card

One of the easiest ways to borrow money of a... Read More

Simplifying Your Search For a New Credit Card

Today, selecting the proper credit card can be a bit... Read More

I?ve Heard About FACTA; What Does It mean?

What FACTA means is that if you, as an individual,... Read More

Understanding Credit Report Score

Understanding credit report scores is important when you see your... Read More

Credit Scoring: What You Dont Know Can Hurt You

You've probably heard the term credit scoring. You may have... Read More

My Student Credit Card Adventure

And some practical advice too!My first credit card?I remember my... Read More

Preventing Credit Card Mess

Credit card debts problem is extremely common today. It is... Read More

Get Your Credit Score To Soar In The Twinkling of An Eye

Ever wonder how a creditor decides whether to grant you... Read More

10 Dirty Tricks Credit Card Companies Play

The credit card companies make billions each year in legitimate... Read More

Beat Credit Card Companies at Their Own Game!

Have you ever wondered how much money a credit card... Read More

Credit Score - Reporting Your Financial Health

Credit score is one of the most basic, determining factor... Read More

Credit Counseling: Is it Really Necessary?

Not everyone has a positive experience with credit counseling. Potential... Read More

Credit Cards And Loans - So Many Options - So Little Time

Credit Cards and Loans sounds like just two things, but... Read More