Credit Card Tips
Why do people choose credit cards?
Nowadays, owning a credit card is an everyday occurrence. Credit cards are not only used to pay for your purchases at the store, gas and bills but also to build up your credit history. In the U.S., unlike in many other countries, your credit score can affect whether or not you qualify for a loan to pay for college. Your credit card can be a great tool to help you save money on everyday expenses and build up a good credit history.
If used correctly, credit cards can be a great way to save money. Credit cards offer many cost-saving features, but consumers do not use them. A good credit card can be compared to a quality car. You will not benefit from it if you do not use it correctly.
The thought processes behind selecting business credit cards and consumer credit cards are different. Most consumers and business cardholders choose their credit cards based on one or more of the following factors.
Annual fee: A credit card that charges an annual charge is looked down on by the majority of consumers. The majority of consumers do not want to pay an annual fee to be able to use a credit card. Many consumers don't realize that annual fee credit cards often have more features and offer cost-saving benefits. Business credit cardholders are more willing to pay an annual fee. It is not surprising that American Express Gold and Plum cards are among the most popular credit cards for business.
Balance transfer: features that facilitate balance transfers are important to consumers as well as business owners. Low APR credit cards with balance transfers are almost as popular than cards with higher APRs but no transfer fee. Standard balance transfers in the credit card business are 3%. There are different credit card offers that charge different minimums and maximums. People who plan to transfer high credit card balances will benefit from lower transfer rates.
Introductory Offers: Credit Card Offers are powerful in attracting cardholders and keeping them for a period of time. Chase, Advanta and Discover offer credit cards with an introductory APR of 0% for 6-15 month. Some cards focus only on the purchase APR while others include both the balance transfer and purchase rates. Although it is understandable that companies will limit their introductory deals due to the economic downturn, introductory offers remain one of the top reasons for people to choose a credit card.
Lifetime benefits value : There are some brave people who have been using one or two credit card for many years. They choose credit cards that offer them the best value for money over their lifetime. This group is very fond of credit cards with lifetime balance transfer or purchase rate.
You should also consider other factors before you apply for a credit-card. Most business and consumer card holders consider the factors above to be most important. Before choosing a card, you should know what you want to achieve with it. You can save a lot time and hassle by doing this.
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