Which Credit Card is Right for You?

No two credit cards are the same and in our modern world. The credit card industry offers a large variety of credit programs designed to suit the needs of a wide range of consumers. From those with no credit history to those who are struggling with too much credit history, there is a credit card that's right for you.

Low Interest Credit Cards

The new standard in credit cards is the card with relatively low interest rates which has a minimal or no annual fee. In the realm of unsecured debt, low interest rates are relative, but some card programs offer fees as low as 4.99% on balance transfers and interest rates on purchases less than 10%. Of course, if you use credit cards the way we are advised to, you should never carry a balance on the card at all making the entire discussion of interest rates moot.

To qualify for a low interest credit card, you must have good or excellent credit and the better your credit score, the lower your interest rate is likely to be.

Rewards Credit Cards

Rewards credit cards are big business for banks and have a lot to offer consumers as well. There is a wide range of rewards offered through credit cars including accumulated air miles, travel rewards, savings on vehicles, cash back, and catalog items. If you'd like to put your credit card to work for you, arrange a rewards credit card in a field where you are likely to use the rewards before any expiration date.

Rewards cards don't always require excellent credit, but your credit must be at least fair. Also, rewards credit cards carry an extra cost to compensate for the offered rewards. Your interest rate might be a bit higher, or more likely, the card will charge an annual fee.

Credit Repair Credit Cards

If you've struggled with your credit in the past, some banks offer credit cards to help repair your credit over time. These cards might be secured by a cash deposit you send to the company or the card might have an extremely low limit to keep the bank safe should you slip again. The interest rate will be extremely high on most, but this is justified by banks as the price you pay to rebuild your credit.

Many credit repair credit cards aid consumers by reporting payments promptly to the credit bureaus and by giving those with bad credit another chance. Almost anyone can qualify for a credit repair credit card, especially a prepaid or secured credit card, but the programs are unattractive to those who qualify for more conventional credit cards.

Debit Cards

A newer form of card that is suitable for everyone but especially those learning to use credit are debit cards. A debit card is tied to a checking account and functions as an ATM card with instant withdrawals using a PIN number, or you can use the card as a credit card with the funds for payment coming directly out of your bank account. Anyone eligible to open a checking account with debit card privileges can use a debit card making it a perfect way to establish and practice using credit.