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Basic Credit Card Basics

Credit cards can be great resources for many people if used properly through the right channels. Not everything can be the same with a credit card and these cards offer many of the same benefits.

The first thing one needs to understand is whether or not a credit card is for all people. People who most need financial freedom should have good credit and should be preferred over those who don’t. The interest rates of most credit cards are higher than most people can afford. People who can and should invest more probably get a better rate. What it is also worth to remember is this: if a credit card company charges you at higher than normal rates rather than below normal rates, then they have a strong incentive to charge you higher rates and to do this they must offer you options. Here are some of the things a person needs to know that will help them determine what is available for their needs:

What is the interest rate on the credit card?

What options do you get for paying back the debt?

What are the monthly expenses of the credit card?

What should you be paying for the credit card as compared to what it would cost you as an individual?

How is the APR different between Visa and MasterCard credit cards?

How much is a monthly interest rate different between Visa and MasterCard credit cards than that that you can find in the 0% cards?

What type of rewards programs are available on the Visa or MasterCard credit cards?

What types of benefits will be offered by the Visa or MasterCard credit cards?

What are the restrictions on the cards. Why is the maximum limit for each card limited?

What are the pre-set participation fees for each Visa or MasterCard credit card?

What are the fees that are imposed by the Visa and MasterCard credit cards when you enroll for a reward program?

What are the restrictions that apply when you buy the Visa or MasterCard credit cards?

What are the benefits that you receive when you buy them from the Visa or MasterCard credit cards?

What is the different APR for the different cards?

How is a reward program different from a regular credit card?

How to Choose a Visa or MasterCard credit card?

Let us look at these questions to help guide one person’s decision as to which credit card is most ideal for them.

‘ The APR. Often times the APR for a credit card can be as low as 3.99%, but this can change.
‘ The interest rate. Visa and MasterCard credit cards tend to have higher than average interest rates.
‘ The APR. When you accept an offer you are sent a direct copy of your credit card agreement. If you are not the user, then you have to send it yourself.
‘ Reward program. Visa and MasterCard credit cards usually grant you free gifts as long as you have paid on time within the promotion period and once you have reached the 50-day limit on your reward reward Visa credit card you can continue earning with your free gifts until you pay off the balance.
‘ The APR. Some reward programs have a much higher APR.
‘ The APR on purchases. Since most people are using their credit cards just to make a purchase, it seems logical to think they will pay cash for the right to purchase something.
‘ How much is the APR? Does it vary amongst Visa and MasterCard credit cards?
‘ The Type of Rewards program. This differs from other reward programs in that the rewards offered do not translate directly into cash reward amounts available to the user but the concept of redeemable rewards is quite different.
‘ Payment and other charges. Visa and MasterCard credit cards normally charges a 4.99% APR on all balance transfers. But it can be higher. Some American Express cashback programs also have higher APR rates.
‘ Credit limit. Visa and MasterCard credit cards generally have a limit of 18,333.00 USD but Visa and MasterCard does not have this limit.
‘ Interest rates. Visa and MasterCard credit cards generally have lower than average interest rates.
‘ Rewards. Visa and MasterCard credit cards typically attract special rewards rewards packages. These rewards are good if you get something worth doing and if you have a good credit history. The more that you use your Visa credit card the more rewards you receive.
This is why you have to make a selection of the type of rewards programs that can best suit your lifestyle. You will certainly find them attractive.
If you do find a Visa credit card that may match your needs and interests you should contact your financial advisor or credit card issuer and fill out a survey to find out from among which rewards programs will best fit your needs and your lifestyle.