Searching for a New Credit Card

It might be time to get a new credit card if it has been a while since you held one.  There are many reasons people give up their credit cards—finances, debt, bankruptcy and so forth.  Whatever reason you had for living credit free, having one credit card is a good idea; if only for emergencies.  Here are a few things to consider before filling out an application.

Annual Fees

While there aren’t too many standard cards that charge annual fees any more, some do.  The cards most likely to insist upon membership fees are the high end cards like Visa Black and American Express Platinum.  The only reason you would consider such a card would be if you are a frequent traveler or foresee having a great deal of use from the card’s perks.

Interest Rates

If you are absolutely certain you can pay off your balance every month, interest rates may be relatively unimportant.  Since that isn’t usually the case you need to investigate them carefully.  Many cards offer introductory rates that are very low but go up remarkably after 6 months or so.  It is the second number you need to evaluate, not the first.  Remember, you can call the company and ask for a lower rate, so pick up the phone and try.

Grace Periods

The grace period is the time between when you make a purchase and when you have to pay for it. 21-25 days is fairly typical, but the longer the grace period, the better for you.  Remember that credit cards get paid ‘first in/first out.’  Your older charges must be paid off before the new ones are addressed. 

Pre-Paid Cards

If you can’t qualify for a traditional credit card, but still want to be able to pay for things without using cash all the time, consider a pre-paid card.  While these cards look nearly identical to regular cards, they have one advantage - you can’t be turned down.

You put a certain amount of money on the card by making a deposit in the card’s account.  Later, when you make a purchase, the total is deducted from the money you already placed in the account.  All you have to do is keep track of your balance so you don’t end up in the position of trying to pay for something without sufficient funds.

Check with Your Bank and Online

There are several places you can find a new credit card.  If you have an established savings and checking account your bank might be a good place to start.  Additionally, look online for offers.  Many companies advertise their current credit card offers on the Web in order to attract new customers.  With a little effort you can compare costs, conditions and cards in order to find the very best one.