How to Shop for Credit Cards

Credit cards are very useful for students who are traveling overseas from home. Credit cards can be used to reduce carrying cash, costly money transfers, costly currency exchanges and can provide an accurate record of purchases for expense reports.

A student credit card will help students establish an initial credit history. Many student credit cards have competitive interest rates and offer students a chance to establish a good credit history. Some student credit cards offer special reward programs for students such as earning points for buying a car.

A no fee credit card has no annual fee. Many credit cards do not charge annual fees. The most important decision factors are the annual interest rate and what rewards are provided with the card.

A low rate credit card has a low fixed annual interest rate. Many low rate credit cards offer low introductory rates. Some low rate credit cards offer low rates for six months to a year. Some low rate credit cards offer low rates only on balance transfers from other credit cards. Some low rate credit cards offer a low rate of interest on a permanent basis. Some low rate credit cards require yearly fees while some low rate credit cards do not.

A reward credit card provides cash back or reward points that are traded for travel or discounts. The first thing to consider with reward cards is the interest rate. There are many different premiums for travel, groceries, consumer goods, cash back, automobiles, electronics and discounts.

A secured credit card can be used to start or re-establish a credit history. You can get a secured card from several different banks and lenders even if you are unable to get approved for a regular credit card. You put a pre-set amount into an account such as $500 or $1000 then you can use your credit card up to that limit. This will help you establish a credit history and allow you the convenience of having a credit card.

A pre-paid credit card functions the same way as a secured credit card. The pre-paid card owner advances the funds that are reduced by purchases.

A retailer credit card enables credit purchases at that store. Many retailer credit cards act like reward cards and offer benefits and discounts. Top retailers like Future Shop, Canadian Tire, Zellers, Ikea, Walmart, Kmart, Hudson Bay Company, Sears, Staples, target and many more offer their own credit cards.

Gas credit cards are a specialty retailer credit card that offer special bonuses that can save you money on gas and other automobile items.

Credit cards can be issued for groups. Many of the group cards are a combination of no fee, low interest rate and rewards that have been negotiated with the issuing bank. When shopping for a credit card all the costs and rewards should be compared and evaluated based on your own personal shopping and payment history.

Look for the TLC "How to shop for the best prices" Seminar.

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