Using Your Card: What Is Its Purpose?

There is a wonderful feeling to having a credit card when you need one, but that blanket term "credit card" can be misleading at times. Not all credit cards are the same, and this goes beyond the APR that most people are aware of. Before choosing a credit card, consider what it is that you plan to use it for. This can make a big difference in how you use it and what you will pay in charges and fees for using it.

There are some consumers who will pay off their bill each and every month, and rarely, if ever, carry the balance over into the next billing cycle. If you intend to follow this routine, then APR will not matter as much to you. Keep in mind that finance charges do not kick in unless you carry over a balance. If you pay in full, you do not incur finances charges which are based on the company APR.


For those who will be paying the full balance each month, consider a credit card that has a longer grace period and has no annual fees. This allows you to use the credit for little, if any, charge. Do keep in mind, however, that if you happen to lapse and carry a balance, you will have to pay the finance charges and then APR will matter to you.

Most people, however, do carry over a balance and for those individuals it is important to find the credit card that offers the lowest annual percentage rate (APR). The APR is the number that the credit card company will use to calculate your monthly finance charge so the lower this number the less money you will pay.

If you think that you may use your credit card to get cash advances, you will certainly want to look at the fees and charges for that service.

It is important to remember that many, if not most, of the credit card companies charge a higher rate for cash advances than they do for purchases. Some companies will charge a substantial amount more and you would do well to avoid using these cards for cash advance purposes.

Many people are lured into poor credit card choices by the promotions that many companies offer. These might include such things as frequent flyer miles, phone minutes, rebates and other things. There is nothing wrong with opting into these programs if they are benefits that you are going to actually use. The old adage that nothing is free applies here as well. Many of the companies that offer these promotions will have a slightly higher APR to help offset the cost of the programs. Make sure you look for that before you sign up, as it may not be in your best interest to pay higher rates for benefits that you will not use.

In order to find out what the APR and other fees are for any particular company, you can visit their website or you can look at the information that comes to you through the mail. Federal law requires that all solicitations and applications for credit cards include key information on the rates and fees that they charge consumers. This information must be clearly printed and if you have to hunt for it, then you may want to avoid dealing with that company.

Peter Kenny is a writer for The Thrifty Scot, please visit us at Credit Report and Credit Cards
Visit http://www.thriftyscot.co.uk

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The Truth About Cash Reward Cards

Can the average customer really earn cash rewards just for making purchases?
In the past, what you could purchase with a credit card and the convenience of its use were the only benefits to having the card. Now, credit card providers offer money-back options on many of their credit cards making the use of their cards more appealing.

In the past, consumers shopped for credit cards that offered the lowest interest rate. Today, consumers can shop for cards based on what type of “reward” they can earn for using a specific issuer’s card.

The world of personal finances is going plastic with more and more cards released in the financial market: secured credit cards, unsecured credit cards, debit cards, cash reward cards, the list goes on. If you prefer to get cash back on the purchases you make and don't play to carry a revolving balance on your card, then cash reward cards will make sense for you.

It is clear that the companies want to reward their customers and ensure that they get their credit card business while still maintain generous profits for themselves. Most of these card companies maintain their reward programs based upon a point system; where on average one point is earned for each dollar spent and these points are then converted into rewards such as frequent flyer miles, gift certificates to cash options. Very few companies actually offer the cash back option. This is however not a problem for many opportunity seekers, who know how to work the systems and keep track of what company established what reward program and when to insure that they are receiving the most rewards possible for the credit-spending, including cash rewards.

Through specialized websites, message boards, and personal or business blogs, the determined credit shopper can find all the information pertaining to cash reward cards. Many sites even offer a wide selection of credit opportunities as well as the tips and tricks of the trade to actually earn cash back from credit card payments.

All that glitters is not gold that a customer is getting back though. On Cash Reward cards the Annual Percentage Rate is much higher than for other cards that are reward-free. Sometimes the Cash Reward card carrier will lure a consumer in with the promised 0% APR but unless the customer understands the requirements for interest-incurring balances, his cash reward may be far less than what is paid in interest accrued.

One problem that comes up is that people don't always know where to find information on cash reward cards . This is understandable and we hope you've found what you are looking for by browsing our site. We update it regularly so please bookmark us. See below for more information on Cash Reward Cards.

For more information on Cash Reward Cards or visit http://www.cashcardsinfo.com/Articles/The_Scope_of_Cash_Reward_Cards.php, a popular website that offers information on Cash Cards, Debit Cards, Cash Advance Credit Cards.

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