CreditCards

Find a Great Deal on CreditCards

CreditCards are one of the most useful items in today’s modern world. Using a credit card can be very useful and economic if used efficiently. 

The credit card processing can vary depending on which card you use, but in most cases provide the user with approximately 56 days interest free credit.

This can be very useful to the holder in varying circumstances. For instance, if you are not due to be paid for another 10 days, you can safely make a purchase using your credit card, knowing that you will have funds in your account by the time the credit card processing takes effect.

Providing you stay disciplined and repay the full balance by the due date, you will be charged absolute zero interest. 

There are a few exceptions to the rule here, for example if you draw cash from your credit card or if you make a transaction overseas, but usually these only incur very small fees.

The most popular cards are either visa credit card or MasterCard.  There are several other types, but nowhere near as popular as the two fore mentioned.

When deciding on which credit card to use, you need to do a little research as the deals vary significantly from company to company. 

Many offer introductory rates of around 6%, but this will increase considerably after the trial period.  Others will offer a long term middle rate; say 13% for the life of the card.

Others will offer varying offers, from 0% balance transfers to free gifts.  Only you can decide which the best offer is. 

Most people when first applying for a credit card will decide that the interest amount is irrelevant, because they intend to pay it off each month.

But it is always wise to grab the best deal possible, just in case your best intentions don’t quite work out, for example, you suddenly get a huge repair bill and need to spread it over a few months.

If you have a low rate, it will only cost you a few bucks in interest, whereas if your rate is 29%, then it is going to cost you big time.

Going to a higher level, some people find that some credit card deals can be even better than bank loans in the short term.  For example some credit cards, will offer a 0% rate for 12 months on balance transfers plus the small fee (usually 3%).

Now if you took out a loan with your bank for 5000 at 10%, the interest would cost you around 500 plus any set up fee. 

Whereas the only charge you would have to pay with the credit card deal, is the 3% balance transfer fee of 150 - a clear saving of 350.

So you really need to look around for the best deals and most of all, you need to be disciplined. 

Remember the credit card companies only offer these fantastic deals, hoping that you will either borrow more, or spread the payments over longer periods, thus making them interest.

So, as long as you are self disciplined, you will gain from these credit card offers.