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What Is Your Best Credit Card Type?

Author: Joseph Kenny

Nearly everyone has a credit card or knows someone who does. Credit cards are an asset when used judiciously, help build credit and make travel and shopping convenient. Many people feel safer carrying plastic than cash.

Credit card companies and banks depend on the fees and APR (annual percentage rate) they charge their cardholders for their profits. There are many types of credit cards and not all of them are right for all consumers. Credit cards are generally unsecured debt, or money the cardholder owes that has no backing collateral. The exceptions to this are the pre-paid credit card and secured credit card, both which can be used to repair damaged credit.

A secured credit card is backed by collateral, or something of value that the credit company can seize if the cardholder fails to pay their balance. The collateral is usually equal to or exceeds the available credit balance.

Consumers who are trying to build up their credit, whether they are just starting their credit history or trying to recover from poor credit history generally use these cards. Prepaid cards are becoming very popular with the parents of young college students as a way to keep them within a budget but still give them a bit of freedom in how they spend their allotments.

Consumers who try to avoid paying higher interest are using Balance Transfer credit cards more and more. Transferring a balance from a high interest credit card to one with lower interest can be a real money saver.

Some cards have an introductory rate of 0% APR which increases after a specific number of months. If you have a large balance on a card that has a 16% APR and transfer it to a 0% card, you'll save hundreds of dollars in interest. For this reason, balance transfer cards are doing a great business. The terms very widely between cards, so be sure that you know the conditions of each card.

Balance transfer cards can be very useful when purchasing large-ticket items like appliances on one credit card then transferring the balance to the 0% card.

Cash back credit cards reward the cardholder by returning 1% or sometimes more, of their purchases. Even mortgage companies have jumped on the cash back bandwagon, applying the 1% to the cardholder's mortgage principal.

Over time, and as long as you don't incur interest fees by carrying a balance from month to month, that 1% can be a significant contribution to paying down your mortgage. Some credit cards send the cardholder a check while others apply the rebates to the balance owed, if any.

There are other types of rewards for using credit cards, too. Consumers can get cards that award them mileage on airlines, points that are used to purchase merchandise, rewards of gasoline rebates or points toward lodging or entertainment. Some of these cards, however, charge a yearly fee to cover the costs of rewards so it pays to read the terms and conditions of such cards.

When used responsibly, credit cards can be a real asset. They are convenient, accepted nearly everywhere and make it easy to track expenses. In addition, unlike cash, if they are stolen your losses are minimal or none.

Article Source: http://www.articlesbase.com/credit-articles/
what-is-your-best-credit-card-type-354243.html

About the Author:

Joe Kenny writes for Credit Cards Web, offering credit cards or onlystop.com for some great credit cards, for US residents with credit card debt visit Rebuild for debt relief

About CreditGuide (Articles Publisher):
CreditGuide is my alias name for publish credit card,
financial, loan and mortgage articles on flixya dot com.
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Keeping the Entertainment Alive With the Sony Visa Card

Sony has been the name in electronics for years, and as our electronic devices continue to take over our lives, isn’t it time you saved some money on everything you buy? The Sony Card by Visa can help. This phenomenal card has a 0% APR for the first year you own it, and after that, your APR only moves to 14.24% , which is fairly competitive with other cards on the market today. You can even transfer your balances onto this card with a 0% APR for the first year, and you’ll enjoy just a 14.24% APR on those after the first year. In fact, all of the APRs on this card are incredibly attractive – even the cash advance rate of 22.99%. You have a twenty day grace period on all purchases with the Sony Card. This card comes with no annual fee, and an incredible rewards program.

The very first time you pull the card out of your wallet to use it, you’ll get 1500 bonus points. From there, you get three points for every $1 you spend on Sony products through Sony authorized dealers. Even when you’re not buying Sony products, you’re still racking up the rewards points. You get 1 point for every $1 you spend when you make your everyday purchases with the card. While most cards call it quits on the rewards after that, Sony doesn’t stop there. You get 5 points for every $1 you spend online at SonyStyle.com and Sony Style brick and mortar stores. In fact, you can find more bonus point opportunities while you’re online with your card. Get discounts on DVDs, televisions, camcorders, digital cameras, and laptops with your reward certificates.

As if the great rates and the rewards programs weren’t enough with this card, you’ll enjoy the full benefits of carrying a Platinum Visa in your wallet every single day. From great service to amazing purchasing power, this Platinum Visa is sure to distinguish you from your peers while earning you superior entertainment rewards. There’s zero fraud liability and an emergency cash disbursement and card replacement program. The Platinum card benefits even offer you an auto rental collision damage waiver every time you use your card to rent a car. With hassle-free online bill pay, there’s little reason to carry any other card in your wallet than the Sony Card by Visa. Add some entertainment to your life by applying today.

Article Source
http://www.articlesbase.com/credit-articles/-nospace- keeping-the-entertainment-alive-with-the-sony-visa-card-210111.html

Apply for Visa reward credit cards or other Chase reward credit cards and start saving. Also save money on your newspaper subscriptions.