Best Credit Card Offer

With the iron grip the current economy has had on personal finances, protecting these assets has become essential. Among several cost-cutting measures worth considering is the selection of the best credit card to suit each person’s financial needs. However, faced with the wide array of cards from which to choose, this can be a daunting task. Therefore, a bit of knowledge about the benefits of one card over another is a definite advantage for consumers.

Enticing many, credit cards with an interest rate of 0% or slightly above are sometimes a good option. No longer as accessible as they were during the height of borrowing a few years ago, for creditworthy consumers, these cards are still available. The caveat here is that the details are in the fine print. Usually remaining at the low rate for only six to twelve months, the interest rate on these cards then becomes variable, tied to the prime rate. Therefore, these credit cards are most beneficial to those who can pay off the entire balance before the introductory period ends.

Equally appealing to many are the balance transfer cards. As the name implies, a means of transferring balances from higher interest rate credit cards to one with a lower rate is what these credit cards offer. Like those with a 0% interest rate, however, balance transfer cards have a brief introductory period. Moreover, with the very low interest rate being applied only to the transferred amount, users of these cards generally incur a considerably higher rate of interest for purchases and even higher for cash advances. Thus, while valuable to those who usually maintain large balances on credit cards with high interest rates, the true beneficiaries of such credit card offers are those who not only retire the entire transferred balance during the grace period, but also do not make additional purchases nor solicit cash advances on this card, thereby avoiding the higher rates.

Reward cards, attracting the interest of those who enjoy the associated perks, remain a consistently popular option. Whether coupled with an airline that links purchases to frequent flyer miles or connected with an issuer that extends privileges and discounts, the allure of these credit cards lies not in its interest rate but rather in the rewards of using this card. Those for whom this card is most beneficial are those who would otherwise purchase the goods or services that they acquire free of charge as a cardholder. However, bearing in mind the higher interest rates that frequently accompany rewards cards, carrying a balance on these cards may negate any inherent benefits.

Finally, most advantageous to those deemed a credit risk — and often their only option — secured or prepaid credit cards prevent the user from accumulating more debt than can be repaid. Requiring a deposit which then becomes the spending limit, these cards permit users to increase their credit limit gradually, as they consistently make the minimum payment on time each month. As a result, users are able to restore their creditworthiness.

Knowing the benefits of each card enables consumers to make the most personally satisfying selection of the best credit card offer.