Choosing A New Credit Card

1. Choosing A new credit card

There are many reasons for choosing a new credit card.

It may be your first card or you may wish to reduce the amount of interest you're paying each month or if you're lucky enough to pay off your balance each month you may wish to take advantage of one of the many reward schemes around.

To help you choose we have compiled a set of questions and answers. One thing to consider is that you need more than one new card. For example if you have an outstanding balance and use still make purchases you should consider switching to a balance transfer card for the outstanding balance and a seperate card for the ongoing purchases. This is provided you pay off the ongoing purchases of course.

2. What To Ask - Standard Questions

Scenario : You pay off your existing balance each month Solution : Choose a reward scheme card. These will either pay be cash or may be points that can be used to purchase certain products.

Scenario : You have an outstanding balance but still make ongoing purchases Solution : Transfer the existing balance to 0% balance transfer card and at the same time get an introductory purchase offer card. This way you can allow the introductory purchase card balance to build up, while you pay off the balance transfer card. You need to be very disciplined with approach though. If you have taken up a balance transfer then try to avoid new purchases on this card as repayments are weighted towards the lower interest part of the balance.

Scenario : You have a large purchase coming up Solution : Apply for an introductory purchase card and then pay off the balance over the period of the offer.

Scenario : You have a poor credit history Solution : There are some high interest cards around for people with a poor credit history. If you do obtain one of these cards then make sure you always make your repayments. This way you will slowly build up your credit rating, which will eventually make the lower interest cards available to you.

3. Can your existing card be improved

This is one option that most people completely ignore. It is entirely possible that you may be able to negotiate a new rate on your card, especially if you have another card with a lower rate. They can only say no, so what have you got to lose.

4. Should I close my existing card

Not neccessarily is the answer. You may be able to use this card in the future for a balance transfer. Also, don't forget that you normally get around 58 days interest free credit. So you may be able to make the odd one-off purchase and spread the cost over a couple of months.

5. Finally ...

Please remember the golden rule. Only borrow what you can avoid to borrow. If you are careful you can make the credit cards work for you, but if the credit card companies make a lot of money out of people allowing the spending to get out of control. Don't allow yourself to be one of these people.

Neil Brown is a freelance writer who makes regular contributions to Credit Card Applications, Loan Applications and Credit Card Companies.

---

How To Boost Your Credit Score

Years ago your credit score was a big secret, known... Read More

Is Your Credit Score Being Held Against You?

Credit Scores That HurtIs your credit score being held against... Read More

The Right Way To Credit Repair

If you have a bad credit rating, then you might... Read More

10 Step Credit Repair Guide

The process of clearing credit can be laborious and frustrating,... Read More

Credit Help for Real Estate Financing: Five Categories of Your Credit Score

1. Payment History -- 35%The number of accounts paid as... Read More

How You Can Avoid Becoming A Victim Of Identity Theft

To reduce or minimize the risk of becoming a victim... Read More

Credit Cards And Loans - So Many Options - So Little Time

Credit Cards and Loans sounds like just two things, but... Read More

Choosing a Credit Counseling Company

If you have considered credit counseling as an option to... Read More

Bad Credit Loans For Those Who Seek Alternatives for New or Old Car

You can still save money on a Bad Credit Loan... Read More

Get Your Credit Score To Soar In The Twinkling of An Eye

Ever wonder how a creditor decides whether to grant you... Read More

Addressing Bad Credit Card Debt

Spending HabitsSo you've just got your credit card. The first... Read More

Why Credit Cards are a Bad Idea

Credit cards are just so convenient, aren't they? There's no... Read More

How To Save Money On Credit Cards

Some credit cards offer a cash advance option. But how... Read More

Why Should You Use Credit Cards

Believe it or not, the way society, especially the commercial... Read More

Small Business Credit Cards

So what do you look for when applying for a... Read More

How You Can Help Prevent Identity Theft

How can I prevent Identity theft from happening to me?... Read More

How to Save Money on Your Credit Cards

Credit card companies make their money on the 85% of... Read More

Dont Fall For A Scheme When Trying To Rebuild Your Credit History

For people with a spotty credit history or bad credit,... Read More

Dont Dig Your Own Pit

If you want to enjoy your life out of spending,... Read More

5 Steps You Can Take to Get Paid!

There are always some companies that have past due invoices... Read More

SuperCharged Secret 1 of 5 - Credit Card Utopia

I AM THE CONSUMER. AND I HAVE LOW-RATE SUPER-POWERS!Note: The... Read More

Credit Problems? Heres How to Manage Your Creditors

If you find that creditors are calling you almost daily... Read More

Trying to Land a Job? Poor Credit Scores May Hurt Your Chances

Many employers are now looking at an applicant's credit report... Read More

Different Ways to Borrow Money

There are many different ways to borrow money. Outlined below... Read More

Which Credit Bureau Should I Use To Check My Credit Report?

There are three main credit bureaus in the United States;... Read More

Credit Help for Real Estate Financing: Credit Scores

When you buy real estate, lenders run all of the... Read More

Big Brother Knows Whats in Your Credit Report - How About You?

Whether you are aware of it or not, credit bureaus... Read More

Choosing the Right Credit Counseling Agency for You ? Some Tips Part 2

Credit counseling companies come in all shapes and sizes. Whether... Read More

Credit Cards: How To Use Them

Credit cards can be a very quick way of getting... Read More

How to Deal with Hire Purchase Debt

WHAT IS HIRE PURCHASE/CONDITIONAL SALE?Although people often talk about "buying... Read More

Lower Your Credit Card Interest Rate Now!

With today's credit card companies, there are many opportunities to... Read More

All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA

Fact: Over 150 million Americans have credit report with the... Read More

What To Look For In A Credit Card

When you are deciding what type of credit card to... Read More