One of the first things you’ll need to decide when choosing your credit card, is why you need one in the first place. Some people choose to get a credit card for cash flow purposes. With a credit card, you can make purchases and buy things, leaving your paycheck or other source of income in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then at the end of the month, simply pay your bill.

Others will choose to get a credit card and use it for instant cash purposes. This way, they can use their credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is why you want a credit card, you should look for one that has the lowest rate possible for instant cash transactions.

With a credit card, you’ll also need to think about the payments. You’ll need to decide if you want to pay the balance in full each month, or only the required amount. When you select your credit card, you should look at the introductory rates, balance transfer rates, and other offers that may apply to new credit cards and new holders. Some will offer you truly amazing deals, especially if you have good credit.

An important area to look at when choosing your credit card is the incentives. There are several cards out there that will give you incentives, such as reward points and even cash back with purchases that you can use towards paying back what you owe. There are several incentives out there with credit cards, all you have to do is look around and compare.

The key area you’ll need to look at and compare is the APR (Annual Percentage Rate). The APR is what you will pay on what you purchase when the incentive period runs out. APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. The lower APR rate you get, the better off you’ll be.

Another concern with choosing your credit card is the minimum payment amount. Most minimum payment balances will start around 3%, although some can be lower while others tend to be quite a bit higher. The interest free period is a concern as well, as you will obviously want to choose the longest period that you can keep the payments down.

When you make that final decision and choose the best credit card that’s right for you, you should always make sure that you know exactly what you are getting. Credit cards are great to have, although they can lead to a downfall if you don’t choose them carefully. If you put some time and research into choosing your credit card, you’ll find the best one for you. As long as you take care of your credit card and pay the bill on time, you’ll help raise your credit and eventually be able to purchase even bigger things – such as a car or even a house.

Here is a testimonial from a Professor in Tennessee
Let’s face it — a lot of college textbooks (esp. in business) are boring and almost painful to read and study. They’re written in a stilted academic style and are typically focused on broad, theoretical views instead of the practical, up-to-date issues we face in our daily lives. Randel knows this and has carved a niche in this publishing market that will serve him, and his readers, well. And, while I thought the stick figure illustrations would make for a ridiculous and distracting way to highlight text, I was very pleasantly surprised to find — instead — they make the narrative much easier to read and digest. (Guess it’s a left-brain, right-brain thing!)

I like how Randel adds in expertise of others in the field, offering insightful quotes from authors: Dave Ramsey, (The Total Money Makeover); Harv Eker (Secrets of the Millionaire Mind); Robert Manning (Credit Card Nation); James Scurlock (Maxed Out: Hard Times in the Age of Easy Credit); Liz Pulliam Weston (Your Credit Score); and Suze Orman (Suze Orman’s 2009 Action Plan). Obviously, since this is a sort of who’s-who in the field, he’s in good company!

Bottom line? It’s an entertaining, yet comprehensive survey of the credit card issues facing consumers that is authoritative and practical. For the best cure — while it can be read in just a couple of hours — I prescribe keeping it bedside and reading it in doses of 10-15 minutes at a time. Then, turn out the light and dream of financial independence!

Highly recommended for public, college and military base library collections and for gift-giving by banks, financial planners, CPAs and yes, parents.

R. Neil Scott, MLS/MBA

Details

* Perfect Paperback: 176 pages
* Publisher: Rand Media Co; 1st edition (April 1, 2009)
* Language: English

Also in Kindle Edition How to Master the Credit Card Game

Usually you can work with a Finance Company to do this, but there are several things you should know first.

Depending on your current situation with your credit status and your credit score. This will determine what the right course of action to take.

So, what is the best company to call and what should you look for?

Well, first off you need to know what they will charge for the service and that’s why its best to shop around for the best company and the best rates.

If you’re wondering should you bundle all your bills together with Debt Consolidation it will really depend on what method to use. Debt Consolidation can help you save on interest rates and give you one monthly payment to manage instead of several monthly bills.

But you must ask yourself several questions and figure out if this is the right course of action to take.

What will be your Monthly payment be?

What Interest Rate will you be charged on the loan?

How long will it take you to pay it off?

What will the marginal tax rate be?

There are some pros and cons to Debt Consolidation which I will outline in the following paragraph. Ask yourself this, what caused the debt in the first place? Remember, you cannot borrow more money to get out of debt but you can make it more manageable.

What you need to do is change your mindset and begin new strategies to reduce your debt. And one of these strategies is to control your spending. I know from experience that this will not be easy but its the only way to get free and clear of your debt.

Understanding the symptoms of overspending and conditioning your way of life is a must. Some people will tell you that Debt Consolidation doesn’t work for various reasons and you will get deeper in. This can be the case if you don’t do some homework on your present financial state.

What you need is a game plan to reduce your present debt and higher interest rates. You need a reputable Debt Consolidation Company that will do most of the work for you. You don’t have to be charged an arm and a leg for this company to perform professional services to reduce your debt and give you 1 low monthly payment.

When working with a Debt Consolidation Company there are a few things you need to know. Remember, your goal is to reduce your debt and have 1 monthly payment. Ask the company what rates they can offer you but be sure to figure out what the total pay-off will be.

Even though they can reduce your monthly payments you don’t want the amount of time to be much longer on the back end. In other words it could take you years longer to pay everything off and your original debt will be much more.

Debt Consolidation can and does work for some people. The trick is to get the right company to work for you. How to find the best Consolidation Company is to call and shop around. Compare the rates they are offering. Explain your financial circumstances and ask them what they can do for you and the best course of action you should take.

Remember, Debt Consolidation is big business with lots of competition and you can negotiate the best rates and whats right for you and your family to reduce, and eventually pay off your debt.

If you have 7-8 Credit Cards the only thing to do is cut them up but don’t do it just and here’s why.

It is so easy to overlook the backs of credit card statements and not be aware of your interest rate charges and changes.

Sometimes there are messages that directly concern your APR and people are either too busy or not aware of how the credit card companies increase their charges.

For example, with the new laws coming into effect early in 2010, Credit Card companies have changed most cardholders agreements and gone from fixed rate annual percentage rate to variable I’m sure you got a notice in the mail informing you of immediate changes to your account..

Basically, what this means is higher charges in the long term.

Here’s what to do, take a weekend day with your husband or wife and get all your statements together and sit down at the table and go over all these statements one by one.

What you need to look at are, the backs of the statements, where all the details are. There are several things you need to look for, which I will put in priority.

# 1 Annual Percentage Rate or (APR)

# 2 Fixed Interest vs Variable Interest Rate ( You Will Need Fixed Interest Rate)

# 3 Grace Period

# 4 Annual Fee

# 5 Minimum Finance Charge

# 6 Method Of Computing Balance

# 7 Transaction Charges

# 8 Cash Advance Fees

The annual percentage rate is the amount you are charged in interest on a monthly level. The lower this rate is, the lower your monthly fee is.

Fixed Interest is the best possible rate to have, this will keep your monthly payments at a manageable level and will not go up or down. The variable rate will fluctuate. This variable rate can increase in a matter of months in some cases 1%- 5% which will make your monthly payments much higher.

The Grace Period is the amount of time the Credit Card companies allows you, before you start paying interest charges, this period ranges from 20 – 30 Days. So, if you can pay off a good chunk you will avoid heavy interest charges and debt consolidation.

Annual Fee is what the Credit Card company charges every year. Its best to avoid this if you can.

Minimum Finance Charges is what the Credit Card companies charges you for the privilege of doing business with them. You will be charged this fee even if you don’t use your card any particular month.

The method of computing your balance is on a daily basis, all the more reason your try for a fixed interest rate.

Transaction Charges are taken every time you use your card. These charges vary depending on what service you use.

Cash Advance Fees are charged at a significantly higher rate and can vary, depending on amount. Sometimes these rates can be as high as 7% -10%. This is on top of your regular interest rate, whether it be Fixed or Variable.

So, in a nutshell, when searching for a Credit Card from a reputable Credit Card company here’s what you should look for.

A Fixed Interest, No Annual Fee, with a Grace Period of 20 Days or less Finance Charges of $1 or none..

There are other charges of coarse, life overdrawn fees, insufficient funds fee. Remember your Credit Score will determine what rates you get but there is so much competition between the Credit Card companies that you can negotiate the best rate for you. If you don’t like the answers you get, move on to the next company and shop around to get what you need.

The best Interest Rate you can get is 0% on a balance transfer. But, word of caution, make sure its not an introductory offer.

Credit Card companies have a habit of giving you 0% interest rate for about 9 months and then slap a 9 – 12% interest rate after the introductory period is up.

You can go with the introductory offer and play the credit card game like my friend, but be sure to transfer again before the new rates kick in. Many families are in debt to the tune of $15,000 or more and the interest rates can vary, depending if you are on fixed or variable rates. This can see a significant increase with your interest rates even if there is a difference of 1%. Balance Transfers can save you a lot of money.

When considering an offer from a Credit Card company there are some things to watch out for. Depending on your Credit Score will usually determine how good the offer is from a Credit Card company. For example, if your credit score is in the 720 range, you are almost guaranteed a good rate but don’t always bank on this.

Credit Card companies have been known to change the rates and with the new laws coming into effect this is not out of the question.

On the other hand, if your Credit score is in the lower range and you get a good offer, don’t make the mistake of thinking that you have more money to spend, this is not the case. Remember, the reason for a Balance Transfer is to lower your monthly costs, not increase them. If you are serious about reducing your debt, dont play the credit card game of robbing Peter to Pay Paul. This does not always work and will eventually catch up.

Credit Card companies are in the business of making money. Just because they loan you money, doesn’t mean they don’t want to make interest at 0%, which means nothing for them. Just look at the fees if you don’t make the regular payment and you’ll see what I mean.

It’s all a numbers game with Credit Card companies and the odds are always in their favor. You’re best course of action is to shop around and compare rates. You definitely want to avoid Debt Consolidation

For example, say you forget to switch before the intro period is up, or they change the rates, or you missed payment date. All these variables are on the side of Credit Card companies to make more money and simply from you not doing your homework.

A few things to watch out for when you get an offer: If you apply to a company for a Balance Transfer be sure that whatever rate you get is the same rate you applied for. It has been known to happen on further checking of your credit history, that this rate will change and they will hope you accept it.

Please read the fine print on the application. Be sure that whatever Interest Rate you are offered is for Balance Transfer and for New Purchases. Sometimes rates on new purchases can be much greater than what the original offer was for.

Again, read the fine print on the back of the application and make sure these rates are the same. Always shop around for the best Balance Transfer Rates but remember that the introductory rates will change, so don’t let them tease you into a false sense of security.

Remember the other things you need to look for is a card with no annual fee and a 30 day grace period, fraud protection, cash back bonuses. These little perks can mean a lot if you use your card wisely.

When you transfer a balance from one card to another, be sure there is no charge for this service. Some companies do charge a fee for this service.

You can learn a lot by checking the fine print to see what exactly the offer is and remember by law they are required to disclose this information.
The most important part of a Credit Card Balance Transfer is to check the Default Rate. This is where you are penalized for a late payment and depending on the company, if you are late one time the introductory rate goes out the window and you will get a shock to your family budget of a higher penalty. Sometimes this can be as much as 7%. The best way to avoid this is to have your payments automatically deducted from your bank account.

Always try to pay more than the minimum monthly payment, even $10 more will make a huge difference to the overall loan.

If you are on an introductory offer check your calender and make a note of when this time is up. Allow yourself at least 1 month to look for new offers on balance transfers. You will not get warning from the credit card companies of when the teaser rate is up. Always shop around for the best possible Credit Card balance transfer and remember to read the fine print, it can save you a lot of money.