Credits cards equip us to make instant purchases in case there is a shortage of funds. It is a billion-dollar industry and companies face stiff competition from one another. In spite of the number of cards in the market, it is advisable to go through the internet and make an informed decision. Credit card companies encourage us to spend much more than what we can afford, for this is the only way they can earn interest from their customers. However, with a little care and precaution one can work towards decreasing the interest rates.
According to a study done recently interest rates on credit cards seem to be decreasing as it seems to have reached its lowest level since January 2010. American Express, CitiCard, and other card companies have all reduced their interest rates in recent times.
Consumers always have a choice between many cards at any given point in time. They have to choose a card which would best suit their needs. This whole process may be a little time consuming but it would certainly be worthwhile. Obviously, a card that has no annual fees, offers 0 percent annual percentage rates (APR) and a good cash back scheme would most certainly be the best option. But cards charge extra fee on late payments, and extra charges are applicable if one exceeds their credit limits etc. So one has to exercise caution while choosing a card and should be able to read the fine print.
Making comparisons between cards is a prerequisite to choosing the right card. Offers by credit card companies should be used wisely. For instance, in the long run balance transfers, low interest rates, zero annual fees etc., can help save a lot of money. Some cards offer reward points and send catalogs that are full of merchandise wherein one can get with the reward points that one has earned, which usually is one point per dollar spent, while, at other times paying at the gas stations will help you double the rewards. So, one has to look for opportunities to double the reward points depending on one`s lifestyle. Rewards include offering air miles, point schemes or cash back offers.
The economy seems to be looking good as the financial status of consumers seems to be improving. There seems to be an increase in spending patterns at retail outlets and a steady increase with respect to employment. In all, it seems to be rosy picture with regard to the economy as data shows a recovery after the slump in the market.