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What should I keep in mind when choosing a credit card?

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If you are a member of a typical American family, chances are, you already hold at least 7 credit cards and are already contributing mightily to the currently growing national debt of the nation. The point is always to decide wisely if that other card will benefit you, if at all.

Keep in mind that all and any promotion of the newest, better credit card are sometimes just surface-level beneficial. So the first thing to keep in mind is to be careful in choosing credit cards and not rely only on the promotions and information we get from the mail or see on the television. The golden rule for purchasing and transactions apply here: shop around! Get information from the internet, from newspapers, from credit experts and bureaus, or any other credible and unbiased source of information. The Federal Reserve Board is a good source of information translated into laymenЎЇs terms for fuller and better understanding of the terms and conditions of credit cards.

In the midst of choosing among the myriad of credit cards, identify which category of cards you best qualify for. Would you best qualify for a secured type of card? If your purpose of getting a new credit card is rebuilding your credit record, then this would be the better choice. If, on the other hand, your purpose of acquiring a card is for the perks and privileges, you may opt for a regular or reward / rebate type of card (which generally charges higher interest rates).

Moreover, the way you intend to pay should determine which category of card you should choose. For instance, if you intend to pay your bill in full, a reward / rebate card would be most useful, since the rather higher interest rates will not apply, and you can have great advantage of the perks attached with the card. Of course, the opposite ЁC lower interest rates ЁC would be true if you intend to keep a balance.

Then, think of the features, and which of these apply to you best. For instance, you might opt for the card with travel perks, but if you rarely travel, you would not be able to take full advantage of said perk. Cards with cash back privileges and gift certificates could be advantageous for you as well. Do not, however, forget to read the fine print of the credit card plans ЁC some credit cards charge annual fees, some do not.

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