The question is which credit cards are right for you. Not all credit cards are the same. Some have a fixed rate, which simply means the APR doesn't change, or at least not that often. Most credit cards are open lines of credit, that you can use to make purchases. Most of them are unsecured, while a few are secured or prepaid. Prepaid credit cards are offered by a lot of major companies and act some what like a debit card, because you will need to open an account and your credit card will be funded by this account. These are great for people starting out with little or no credit or rebuilding credit. Low interest rate cards, are ideal for people with good credit that would like to take advantage of reduced interest rates. Some credit cards have an annual fee, while others do not. Some earn reward points. Store credit cards work similarly to regular credit cards, except there is no annual fee, and the card is only good for purchases at that particular store. These store cards are also effective at rebuilding credit.
You would be surprised at the overall number of people who just don't bother to compare credit cards before signing up for them. You should compare the different features, different benefits, and details of various credit cards. Find, compare, and read reviews before you decide. You wouldn't buy a car without comparing details or benefits, and you never buy a house without looking at several first. Just apply these same principles to credit cards.
Credit cards are convenient for customers and can be beneficial if used correctly. They are the perfect way to finance larger items while still earning points for everyday purchases. Just shop around first, and get the right credit card for you.
Pat Wood is the author and owner of the website http://www.best-creditcards.info She has been in the banking industry since 1987 and has written several articles on credit and debt
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