"5 Simple Rules" - How To Find A Good Quality Credit Card

"5 Simple Rules" - How To Find A Good Quality Credit Card
Just about everybody has some sort of credit card these
days. Whether it’s with a retail store, gas chain,
or with the large credit card companies. The truth is that
there is a large variety of choices when it comes to
interest rates, annual fees, late penalties, balance
transfers, and payment terms. Following these "5 Simple
Rules" when applying for a credit card, can save the
consumer a ton of money and lots of headaches, down the
road.

Rule #1: Always look for a credit card with a low interest
rate, or a 0% balance transfer option. This is extremely
beneficial to the borrower, so that he or she, may have the
ability to transfer their higher interest rate credit cards
to the 0% or low interest credit cards.

Rule #2: Always look for a credit card that has a grace
period on payments that are late. Many credit card holders
have their interest rates boosted automatically after
making a payment late within a certain period of time.
This certain period of time is usually between six months
and a year. Some credit card companies will boost the
interest rates anywhere from 5 to 10 percentage points,
after just one late payment. There are even credit card
companies that reverse the 0% balance transfers to
retroactively charge interest on balances after payments
are made late. So that low interest credit card, now turns
into an out of control debt monster that will devour all of
the borrower’s income.

Rule #3: Always look for a credit card with a little or no
annual fee. If the borrower has good to excellent credit,
say with a credit score of 550-800, then it is extremely
easy to search online to find a little or no annual fee
credit card. Unfortunately, if the borrower has bad,
little, or no credit, then paying an annual fee is almost
impossible. However, the credit borrower with good to
excellent credit should avoid paying any type of annual
fees whatsoever, if at all possible. Obviously, there are
exceptions to this rule such as business, revolving, or
corporate credit cards, which many offer extremely high or
even no credit limits.

Rule # 4: Only apply for a credit card with a company that
has a proven track record with a solid reputation in the
financial industry. Many credit card companies have a
reputation of honesty, fairness, and excellent customer
service. However, there are many credit card companies who
have reputations of changing terms frequently, raising
interest rates often, having bad customer service, and
receiving a large amount of complaints from consumers. It
will save the borrower a lot of time, headaches, and money
to find a credit card company that is reputable.

Rule #5: Never apply for a credit card with a company that
stipulates that they can accelerate your payment of the
debt. Many cardholders don’t know that numerous
credit card companies can, and do, sometimes raise the
minimum monthly payments due by the borrowers to extremely
high amounts. Some raise the minimum monthly payments to
as much as 200% of their regular payments. So beware of
the cardholder terms of agreement. Read the legal terms
and conditions of the credit card very carefully.

If you follow these “5 Simple Rules”, then you
too, will be able to steer away from pitfalls that befall
millions of the credit card holders, and you will be able
to say confidently, that “Yes, I have a good quality
credit card.”

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Bryan Pringle, Ph.D., has written many articles on the
credit industry, and is the webmaster of websites offering
news and information regarding credit cards. For more
information, please visit:
http://www.apply-forcreditcards-online.com