Credit cards are an excellent and convenient source of liquidity; offering the consumer another financial option besides cash alone. Indeed, the use of these cards has substantially grown during the past few years, as has the number of providers. However, not all credit cards are alike and it is important for us to briefly examine some of the most important points to keep in mind when searching for the best type of card.
The Different Types of Cards
It is first important to recognise that there are a handful of different cards that will likewise accommodate various requirements. For instance, prepaid credit cards are excellent for those who are going on holiday and wish to only have access to a predetermined amount of liquidity. Credit cards for bad credit will enable an individual to build his or her credit score from the "ground up", thus increasing the chances that a more robust credit level will be possible in the future. As their name denotes, cash back credit cards will give the consumer a certain amount of cash back when monthly purchases reach a specific level. There are also programmes that will offer a card that is interest free. These are handy devices that will not only help to improve a credit score, but that can also offer extra liquidity when it may be needed.
So, some of the most common forms of credit cards are:
- Prepaid Credit Cards
- Credit Cards for Bad Credit
- Cash Back Credit Cards
Factors to Consider
While it is true that all of these cards offer numerous benefits, there are also some metrics that will need to be considered to make an educated choice.
Whether we are referring to a Virgin Atlantic credit card, a Visa or a Mastercard, interest rates are extremely important. As these will directly dictate the amount that one will pay at the end of a billing cycle, interest should be taken into account. Of course, those with poor credit are likely to be subject to higher rates, as they are considered to be more of a "risk" to the institution. If interest payments prove to be too high, a card that is interest free may be a wise option.
It is also important to compare the different companies themselves. There are many times when special promotional packages can be taken advantage of. These can include such features as higher levels of credit, free gifts or what are known as "0 credit cards" (that is, cards that will not apply any interest for a certain period of time). Thanks to the power of the Internet, third-party sites will enable you to compare these benefits quickly and easily.
Finally, the reputation of the company should be taken into account. What are other users saying in regards to their services? Although many companies will claim to be the best at what they do, user opinions are key in developing an unbiased perspective. Some of the main metrics that should be accounted for will include levels of customer service, the layout of the website, how long the company has been established and any "fine print" that will accompany the service contract.
To summarise, some key observations when choosing a particular card are:
- Interest rates.
- Additional amenities that the company may offer.
- The reputation of the provider.
- Customer Service
- Terms and Conditions
By following these simple steps, you are likely to encounter the credit card that will suit your unique needs and your financial position.