Credit Cards To Avoid

Posted by Nick Niesen on October 29th, 2010

Not every credit card is a good one - just because it promises a few good things. The truth is, that you really do not know just how good a credit card might be until you read the fine print that gives you all of the details. Merely comparing a few of the more open and upfront (on the advertisement) features might give you a starting place, but you should go a little deeper than that in order to get a credit card that is worth having.

Choose a type of credit card that you think will benefit you the most. Make your choice from either air miles cards or drivers cards if you travel a lot, or get a rebate card for general shopping purposes. You can also choose specialty cards from booksellers if you purchase a lot of books, or entertainment credit cards if you frequent this type of place. You will do well to take a little time to see what kind of different credit cards are available. Make your choice related to the things that you normally charge the most amount of money each month.

A good place to start is by looking at the interest rate. Interest rates can range from 9.99% up to a little over 18%. The lowest rates of interest are for those who have good or excellent credit. Anyone else can expect to get a card with a little higher rate. Ideally, you want to get a card with as low a rate of interest as you can. While you may not pay any interest in the first year, remember that it will be charged during the second year. It can also be started suddenly if you make a single late payment on some credit cards.

Then you will want to look and find out if the credit card allows you to make balance transfers - and when. This little great feature can really save you some money if you can get it with 0% APR interest and no fees attached. Be sure to find out when you can make the transfers, though, since some cards require you to list any transfers when you apply, and no more can be made after that. See also just how long you can enjoy not having to pay any interest on this amount. It could be anywhere from three months to the life of the transferred amount.

The introductory offer should be looked at next. This includes the balance transfers but also tells you just how long you have to make new purchases and pay 0% APR interest on those charges. The length of time on your introductory offer and the time on your balance transfers may be different.

Lastly, look at the amount of rewards and compare them. Some credit cards will give you a large number of points or miles when you make the first purchase. This is great and can really be a big help since other cards may not offer this kind of deal. Be sure to see, though, whether or not various fees or limitations in some way eat up this great value attached as conditions. Also, many, but not all, credit cards will give you a percentage of your average purchases, such as what you charge on gas, food, and medicines.

By paying off your credit card in full each month, you can enjoy a greater level of savings by not having to add on any late fees or interest. Watch out for credit cards that require minimum balances.