You may be wondering what the best credit cards to have are. In this article, I am going to review some of top credit cards available in the credit industry today.
If you have a good credit history, the Virgin Credit card is at the top of the list.
This credit card offers a 16-month interest free period on balance transfers which gives you an appropriate amount of time to clear up any debt that you have incurred.
If you have an outstanding debt on another credit card or department store card, simply transfer the balances from your other accounts to the Virgin Credit card in order to take care of those balances without having to pay interest.
There is a balance transfer fee involved of 2.98% that will be added on to your statement balance. It is important to clear the outstanding debt during the 0% period because once it ends you will be charged the standard rate of interest which is 18.6% for balance transfers.
The key objective to properly using credit cards that offer interest-free periods is to clear your debt during that period of time. If this is something that you are unable to accomplish, a credit card that offers a lower, standard rate of interest could be the better choice for you and prove to be a better value in the long run.
A credit card should not be used to supplement your income; only charge what you can afford to pay back on a monthly basis. In a situation like this, the best credit cards to have may just be lower-interest cards.
The best credit cards to have that offer rewards whenever you use the card are the cards that you should apply for first if you have a good solid credit rating. The American Express Platinum Cashback credit card is a prime example of a card that is most generous. It pays 5.0% cash back during the first three months up to a maximum amount of $2,000.
Once the introductory period has ended, you will continue to earn cash back, only it will be earned at a much lower rate. For example, for the next $3.500 that you spend on the credit card, you will earn 0.5% cash back; if you are more of a big spender and you charge up to $7,500 on this credit card, you will earn 1.0% cash back from your purchases.
It is important to keep in mind that a cash back or rewards credit card is only suitable for people who will clear the balance in full each month. If you are unable to do this successfully, the interest that you are charged will be significantly greater than the value of the cash back that you receive. The American Express credit card, for example, charges and annual interest rate of 19.9%.
Your credit score is very important and can be the key that will approve a mortgage, loan, or even a cell phone contract. If your credit score is low, you can get denied for other everyday necessities that you may need. Alternatively, if you don’t have an established credit history, you may also be denied.
The best credit cards to have for people who have a less-than-perfect credit score may have a much higher interest rate attached to the deal. It is important to view these types of cards as a credit-building vehicle rather than using the cards for any old purchase.
Always pay your entire credit card balance on time each month. Once you have proved to the creditor that you can manage your credit responsibility, you will have a much greater chance of being accepted for credit increases or lower interest rate credit card offers.
A wonderful example of this type of credit card is Capital One’s Classic card which is specifically for people who need to improve their credit rating. The standard interest rate for this card is 34.9%, so this is definitely not the card to use sparingly or to owe money on. Over a period of time, you will end up paying more money due to the high interest rate.
Tags: American Express Credit Card, American Express Platinum Cashback Credit Card, Best Credit Card, Best Credit Cards, Capital One’s Classic Card, Virgin Credit Card
December 30th, 2009 at 7:41 pm
[...] Read more: Some Suggestions on the Best Credit Cards to Have | Zero Percent … [...]