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Finance

How to Choose the Perfect Credit Card

Every credit card is different. They each offer different fees, interest rates, introductory terms, and more. It’s a matter of sifting through the offers and comparing the benefits of each one to make sure you are getting the most of the one you choose. Let’s find out how to choose the perfect credit card.

Balance Transfer Cards

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These types of cards offer very low, or even no interest rates for a certain period of time on balance transfers. If you have a lot of balances on other cards that are charging high interest, you can open a card such as this and transfer your balances to it with the goal of paying it off before you are charged any interest on the balance on the new card. This is a good way to pay down high balances to improve credit.

Low Interest Cards

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Low interest cards have an obvious benefit. With lower interest, you are charged less in interest fees every month and more of your payment goes to your balance. You pay off your balance quicker and you are able to avoid more fees altogether. Cards that have interest that is low and stays low usually requires good credit. The better your credit the better the interest rate.

Rewards Cards

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Credit cards that offer rewards can offer them in the form of loyalty points to use toward flights or stays at hotels, points for merchandise, cash back, or more. The type of card you choose all depends on the types of rewards would suit you best and the types of purchases you make most often.

Credit Repair Cards

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If you have poor credit and need to rebuild it, there are credit cards to help you do just that. Secured cards only give you a credit limit equal to the deposit you place into an account. This account earns interest for the time it’s there. Once a pre-determined length of time is up, you get that money back or it is applied to your balance. Other cards may not be secured but they might have higher interest due to the higher risk to the bank. Banks that offer credit repair cards usually report to the credit bureaus every month.

Specialty Cards

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These types of cards are usually for those who own businesses or perhaps students. If you qualify for a specialty card, you are usually offered special rates, no interest, no fees, or a combination of these offers.

Choosing the right card may not be easy and might take some time but it is worth the effort that you put into it. Choosing the wrong card can lead to paying a lot more in fees and interest as well as perhaps ruining your credit. The right card can mean you get more out of your card than just being able to purchase things when needed.

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