If you intend shopping for a card in 2011 follow some of these useful tips and choose the right card depending on your requirements as well as spending habits.
Firstly, make your credit score the guide while choosing a card, and make sure that the new card will suit the level of credit that you will require. Do not apply for cards that are beyond your reach as this will get you into a lot of trouble in the future, and will cause needless problems with your credit score, if the application is denied.
You could start of by using Bankrate`s FICO score estimator. In order to get the best results use the recent copy of your credit report and look at the credit scores and answer the questions accordingly.
Once the estimate of the credit score is in hand, use that to shop for the new card. You can use this credit report as a guide. Bankrate.com allows you to search for new cards based on four categories depending on your credit rating such as bad, average, good, and excellent.
If you are faced with a lingering card debt you might wish to consider a credit card that has a low-rate balance transfer on offer. Using the super-low rate on balance transfers will help you save a lot of money on finance charges this New Year. It`s advisable to factor the cost of doing the balance transfer. The balance transfer fee charged is usually 3% to 4% on the transferred balance. Be careful while doing balance transfers on large balances. Choose a card that has the lowest annual percentage rate if you occasionally carry a credit card balance.
If you plan to make purchases in the New Year, which could take a few months to clear off, then choose a card that has a very low introductory rate. There are cards with low-rate introductory rates of one year or more, this added bonus allows you to pay off balances without having to pay finance charges.
If you are punctual in your payments then choose cash-back cards that are linked to rewards. However, be careful to choose a card that carries no annual fee.
If you have damaged credit, choose a card with reasonable fees which should be around $39 to $59 annually. Avoid cards with processing or application fees.