Which Credit Card is the Best Credit Card For You?

"I pay with plastic these days. I don't carry around much cash anymore."

Credit card companies love people who use their cards for most of their financial needs and they're usually willing to "up the ante" as the expression goes, if they see that individuals use their credit wisely. Besides, by paying with plastic, individuals benefit from purchase protection as provided for under section 75 of the Consumer Protection Act.

Card holders who meet minimum payments or pay the full amount each month usually receive offers from their card companies for a higher credit limit. In many cases, they even receive cheques from these companies encouraging card holders to use them for practically any purchase they need to make.

For credit card holders, these questions must be addressed:

• Is it the best card for you?


• Is the minimum payment or the full balance paid every month?


• Does it offer cash back or rewards that can be used to advantage?

With the proliferation of credit cards and the various ways in which they are structured, it certainly pays to shop around for the best one that serves the person's needs in both the short and long term.

The card industry has become creative and flexible and companies offer a huge range of cards including cashback, no-fee, and will even offer zero percent interest on balance transfers for a fixed period, usually from 12 to 14 months to promote their introductory offer.

The general rule of thumb is that if credit card users pay off the full balance every month, a cashback option would probably be the best deal. Purchases are discounted and at the end of 12 months, the card holder receives a sum that can be used in any number of different ways.

If card holders are unable to pay off the balance each month, leaving an existing balance on their cards, the best deal would most likely be an option with a low interest rate averaging between 10% and 12%.

Card holders should know that a credit card can have three separate types of interest rate associated with it and diligence dictates that users should be familiar with what these rates signify because when the monthly statement arrives, the amounts can be confusing. Below you will find a clear breakdown of these rates which serves as a guideline for individuals about to fill in an application. You can also find many online guides for individuals who are not yet familiar with the dynamics of cards and their use.

The three different credit card rates one is likely to encounter are:

• PIR - purchase interest rate: this rate applies to purchases of both goods and services
• BTIR - balance transfer interest rate: this rate is applied to balances transferred from one card to another. Individuals usually take advantage of this facility especially when the existing rate they are paying is too high
• SVR - standard variable rate: this is the rate that is charged on all unpaid balances on the card, except that of the balance transferred from another card

If in doubt, there are a number of very good online services to compare credit cards which provide individuals with key information. This in turn enables them to make an informed decision as to the best card to suit their present circumstances and spending patterns.

Jon Francis has been involved in various areas with the world of finance and has a keen eye for a bargin! He has an in-depth knowledge of credit cards and now helps others get the best from a credit card For more information visit "http://www.airaid.co.uk"

Cash Back Credit Card or Reward Credit Card: Which One Should You Get?

Does your credit card offer you cash back or reward points every time you use it? If it doesn't, you may be missing out on a great feature!

Most credit card issuers today offer cash back and reward points for credit card holders. With a cash back and reward credit card, you can get products for free or on a discount. You can even choose to donate the points you earn to your favorite charity, organization or school. Some credit cards will even let you put your cash back into a savings account that you can use to pay for your child's college tuition several years from now.

From the many benefits of having a cash back and reward credit card, there is one catch – the interest rate on this type of credit cards are a bit higher than credit cards that don't offer cash back and reward points.

Cash Back Credit Cards Payout

Typically, a cash back credit card will pay between one and two percent on most of your credit card purchases. You would receive the cash in various forms – discounts on furniture or gas, check in the mail or as a negative balance on your credit card account.

Reward Cards Payout

When it comes to reward cards, you receive rewards points on purchases that you make. You typically earn one to five points for every dollar you spend using your credit card. However, with a reward credit card, you may only be able to earn points when you make your purchases at specific stores in the credit card issuer's “Merchant Network” list. If you shop at other location or buy from non-participating merchants using your reward credit card, you would either get less or no points at all. After you accumulate points up to a certain amount, you can redeem your points for products offered by stores in the “Merchant Network” list.

Cash Back Credit Card versus Reward Credit Card

A cash back credit card gives you the freedom to use the card at any merchant or locations you choose. However, a cash back credit card will only pay between one and two percent on your credit card purchases. A reward credit card, on the other hand, pays higher, almost reaching about five percent. However, you would only earn points if you use the card on participating merchants.

It is up to you if you want to go with a cash back credit card or a reward credit card. Consider and weigh the pros and cons of each type of credit card. If you are a heavy credit card user, you can rack up reward points quickly, but only if you shop at specific locations and stores. You can accumulate points with a cash back credit card and use it practically wherever you want to shop at, but with the lower payout compared to a reward credit card, you may not be able to get your cash back that quickly.

Keep in mind, though, that before you make your decision, make sure that you have done your research. Check out the credit card companies, compare each of their offerings and weigh their benefits. Do all these things and you will end up with a cash back or reward credit card that is perfect for you.

Timothy Gorman is a successful Webmaster and publisher of Best Online Credit Card Offers.com where he provides more credit card facts, tips and advice on finding the best cash back credit card online, that you can research in your pajamas on his website at http://www.bestonlinecreditcardoffers.com