Choosing A New Credit Card
1. Choosing A new credit card
There are many reasons for choosing a new credit card.
It may be your first card or you may wish to reduce the amount of interest you're paying each month or if you're lucky enough to pay off your balance each month you may wish to take advantage of one of the many reward schemes around.
To help you choose we have compiled a set of questions and answers. One thing to consider is that you need more than one new card. For example if you have an outstanding balance
and use still make purchases you should consider switching to a balance transfer card for the outstanding balance and a seperate card for the ongoing purchases. This is provided
you pay off the ongoing purchases of course.
2. What To Ask - Standard Questions
Scenario : You pay off your existing balance each month
Solution : Choose a reward scheme card.
These will either pay be cash or may be points that can be used to purchase certain products.
Scenario : You have an outstanding balance but still make ongoing purchases
Solution : Transfer the existing balance to 0% balance transfer card and at the same time get an introductory purchase offer card.
This way you can allow the introductory purchase card balance to build up, while you pay off the balance transfer card. You need to be very disciplined with approach though. If you have taken up a balance transfer then try to avoid new purchases on this card as repayments are weighted towards the lower interest
part of the balance.
Scenario : You have a large purchase coming up
Solution : Apply for an introductory purchase card and then pay off the balance over the
period of the offer.
Scenario : You have a poor credit history
Solution : There are some high interest cards around for people with a poor credit history.
If you do obtain one of these cards then make sure you always make your repayments. This way you will slowly build up your credit rating,
which will eventually make the lower interest cards available to you.
3. Can your existing card be improved
This is one option that most people completely ignore. It is entirely possible that you may
be able to negotiate a new rate on your card, especially if you have another card with a lower
rate. They can only say no, so what have you got to lose.
4. Should I close my existing card
Not neccessarily is the answer. You may be able to use this card in the future for a balance transfer. Also, don't forget that you normally get around 58 days interest free credit. So you may be able to make the odd one-off purchase and spread the cost over a couple of months.
5. Finally ...
Please remember the golden rule. Only borrow what you can avoid to borrow. If you are careful you can make the
credit cards work for you, but if the credit card companies make a lot of money out of people allowing the
spending to get out of control. Don't allow yourself to be one of these people.
Neil Brown is a freelance writer who makes regular contributions to Credit Card Applications, Loan Applications and Credit Card Companies.
MORE RESOURCES:
 BBC News | Credit cards Superprime slime Economist, UK - As the credit boom reached its peak, the firm’s credit-card business was growing by a dizzying 20% or more a year, with younger consumers with scant track ... Overdue credit card bills show rise in June Credit Cards: How to Protect Your Limits Debt crisis spreads to credit cards |
 Reuters | Washington Mutual stock down on credit concerns Reuters - Citing the thrift's financial statements for the period ending June 30, Gimme Credit analyst Kathleen Shanley wrote that "many creditors have quietly been ... WaMu Drops Second Day as Gimme Credit Cites Liquidity Concern UPDATE: WaMu's Stock Down As Investor Confidence Drains WaMu spokesman: no need to rely on outside funding sources |
 AFP | Credit Suisse's cautious tactics in credit crunch pay off for now Wall Street Journal - CREDIT SUISSE Group's slow and steady approach may yet win the race. It seems to be working so far for the Swiss bank. While most bank bosses a few months ... Credit Suisse Bulks Up Despite Losses Credit Suisse cautious despite return to profit Credit Suisse defies fears by posting only a small markdown |
FCStone Group increases size of credit facilities Forbes, NY - AP 07.24.08, 3:55 PM ET FCStone Group Inc., a commodity risk management firm, said Thursday it has reached deals to increase the size of its credit ... FCStone increases credit lines Kansas City Business Journal FCStone Group, Inc. Announces Syndicated Margin Call Credit ... |
 CBC.ca | Credit-card firms investigate fraud at Canadian airport kiosks Computerworld, MA - By Jaikumar Vijayan July 24, 2008 (Computerworld) Low-cost Canadian airline WestJet has temporarily stopped the practice of allowing customers to use credit ... Does using your credit card to check-in expose you to fraud? Expert says it's not surprising airport kiosks possibly targeted ... Credit card fraud at Pearson International Aiport has people worried |
Cicero gas station reports attempt to disrupt credit card system Chicago Tribune, United States - An operator of a Cicero gas station called police Tuesday after finding that two men had climbed the roof of the business to cover up a credit card ... Rooftop gas theft scheme foiled |
 Sify | Misuse of unsolicited credit cards to be penalised Business Standard, India - PTI / Mumbai July 25, 2008, 16:03 IST Aggressive marketing by credit card issuing banks may bounce back on them with the Reserve Bank making it clear that ... Unsolicited credit card is no more your headache Credit cards get RBI boost RBI warns banks on credit card interest charges |
 The Southern Ledger | Executive says bank has more than enough capital to endure credit ... MarketWatch - The company has been one of the harder-hit banks during the credit storm, but analysts said it has effectively boosted its capital reserves to protect ... National City Reports Loss On Write-Down, Credit Losses National City Corporation Q2 2008 Earnings Call Transcript City National posts lower profit as it sets more money aside for ... |
 Wall Street Journal Blogs | Extra! Extra! Credit Concerns at New York Times! Wall Street Journal Blogs, NY - The NYT front page does not include a story about its credit default swaps. (nytimes.com) Shares of New York Times Co. are down 4%, but the newspaper ... Extra, Extra: New York Times (NYT) About To Get Downgraded To "Junk" |
 Gulf Times | Asian Stocks Fall on Credit Concern; National Australia Slumps Bloomberg - ``Investors are out there thinking everything's fine and another bank comes out and increases its provision for credit-related losses. ... Asian Stocks Fall Most in Six Weeks on Credit, Profit Concerns Asian Stocks Fall on Credit Concern; National Australia Slumps Asian Stocks Gain for Fourth Day on Easing Oil, Credit Concerns |
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