There’s no debate that every adult needs at least one credit card with an available open balance. After that you have some decisions to make and it can be confusing with all the different types of cards and the competing offers
Balance Transfer Cards
A balance transfer is pretty much what it sounds like, it allows you to take the balance of one card and move it to the new one. Now if you are new to credit ratings and credit cards you might be thing “Why would I want to move my debt to another card?” Well you wouldn’t want to transfer debt or pay off one credit card with another even one with a lower rate unless the card specializes in transfers and introductory APRs. Under these conditions you get special rates for 12-24 months after opening the card to transfer and pay off debt equal to your available credit. Most often you will see 12 month deals where you get 0% apr on new balance transfers. If you are lucky you can land 0% for 24 months on new purchases and transfers.
Balance transfer offers are a great way to get a new credit line opened while paying down your current debt. As always be responsible as any transfer not paid off in the given timeline will be treated as normal at the full interest rate and could incur penalties.
Reward credit cards offer one or more perks that correspond to how frequently, where and what you use your card. For instance there are cards that offer you simple cash back of 1% cash back but that might only be at certain stores or on certain types of purchases. Others get more complex offering 1% back on all purchases but then 2% on gas and groceries and 3% on travel. Travel rewards cards can also offer you points or miles to be used exclusively or travel and travel related upgrades such as hotel stays and rental cars.
All of rewards cards are not equal and depend heavily on what type of user you are, how frequently you will use the card and how easy it is for you to use and maximize the rewards. That said with some planning and caution rewards cards are some of the best available and can give you an extra bang for money you were already spending.
45% of Americans who plan to apply for a new credit card want a rewards card.
If you choose carefully and take care to avoid potential pitfalls, you can benefit greatly from rewards credit cards, and even use them to help improve your credit scores.
Featured Rewards Card Types:
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