Evaluating Credit Cards? Do Your Homework

Credit cards are part of virtually everyone´s daily lives. They are no longer simply a convenience,but in many cases - a necessity. Many businesses today request plastic over paper, some even offer discounts for those willing to charge their purchases. With the internet economy predominantly credit-card based, cash-only folks would be left out of the fastest growing venue in which Americans shop.

With a plethora of credit cards offers out there, the question becomes not whether to carry a credit card, but rather which card to carry. For this decision, you must do your homework and evaluate a variety of factors.

The first feature most consumers should consider in choosing a credit card is the APR. Of

course, it makes most sense to concentrate on the interest you will be paying on money borrowed. These rates vary from card to card, with lower rates often offered to those with better credit scores. Be aware too, that many of these rates are for a limited time and the rate may be subject to change at the discretion of the lender.

Another feature to take into consideration is fees. One would be wise to consider, not only a card´s APR, but additional fees charged along the way. Some cards carry yearly fees for simply holding their cards. There are also late fees to be considered, and international fees; this is particularly important when purchasing over the internet. Many times you are purchasing from companies overseas, and you may be charged for this service.

Of course, the most enjoyable feature to evaluate is the rewards program. There is a wide breadth of perks being offered by credit companies to entice you not only to sign on, but to use their card wherever and whenever possible. What started years ago as frequent flyer miles earned with your purchases has grown today into a garden of choice.

Cash back programs are a big hit with consumers; in these programs you can earn cash back on your purchases. Some are aimed at specific purchases such as travel or gas. But others offer cash back on a variety of purchases at supermarkets, gas stations, department stores, and just about any other kind of commerce out there. Also popular are the points programs. In these programs you earn points when using your card which later can be cashed in for select items, often at a greatly reduced cost.

Free air travel is always in big demand by consumers. Airlines with rewards cards are trying to attract new customers in these difficult financial times with appealing promotions. For example, Southwest Airlines Rapid Rewards Premier Credit Card is offering 50,000 bonus points after your first purchase, which is equal to over $800 worth of their Wanna-Get-Away miles that can be redeemed for two free round trip flights. Similar deals abound these days. In the end, you should always consider all the terms and conditions of the card you are considering, including the APR and various fees charged, but all things being equal, selecting an awards program is where the fun begins.


Article published by: American Chronicle