Credit cards can be a good thing to have in cases of emergencies ,and if they are managed properly. Many people make the mistake of getting credit cards and not understanding them, and getting in financial trouble. Credit cards are not all the same. Some have service charges, and others have different charges. Credit cards also have different interest rates, spending limits, and penalties. Its important to find the best credit card available that fits your individual needs.
Not all credit cards are the best for everyone. Some banks offer a low balance transfer interest rate, which is great for people who have cards that have a higher interest rate. Some will offer zero payments for six months which seems like great deal, however what you don't know is that the bank still charges interest on your outstanding balance. This will make your payment higher in six months and make you owe more as well.
People who have excellent credit always get the better deals on credit cards. Banks feel that they are the most likely candidates to pay pack their loan so they offer incentives to keep them as customers. The credit industry is very competitive so banks are likely to offer many reasons to stay with them as customers. For example, Discover Card offers 6 months without payments , no annual fee, and a low interest rate as long as you are not delinquent. This is only offered to people who have great credit. People wit less then perfect credit will most likely pay a higher interest rate, maybe even a annual fee, and receive a lower spending limit.
The best thing to do is to shop around if you are looking for a credit card. Getting the best card from a bank will depend on your credit rating. Even people with bad credit may be able to get a credit card, but they need to expect to pay more, and maybe pay fees that others may not. The best thing to do is to shop and find the best deals, and begin to establish good credit history with the bank. Once you do that you can always ask for a better rate or even find another bank willing to offer you a better deal.