Comparing Credit Cards On-line
The Changing Face of the Credit Card Industry
When shopping for a credit card, where better than to look than on the Internet? This will save you time and probably get you a better deal. Competition is fierce in the credit card business these days which causes the card issuers to lower their credit requirements which causes more competition and on and on.
It used to be that there were just a few major card companies but now it seems that every company is getting in the game. This happened for several reasons but one of the major ones is that it encourages consumer loyalty and drives business back to the vendor. Hotels such as Marriott offers the Marriott Visa card. Lodgers accumulate bonus points for using their card at their hotels.
Types or Categories of Credit Cards
When shopping for a credit card online, it is important to know what your credit card requirements are.
Following are some credit card categories:
First, low interest credit cards. Who doesn't want that? Generally, these are credit cards with 0% intro APR's (Annual Percentage Rates) and low fixed rates.
Then there are balance transfer cards, which are designed to transfer another high interest balance to a new low APR credit card.
A student credit card is a credit card that keeps in mind the needs of high school and college students. Be wary if you are a parent responsible for the monthly bill!
Business credit cards are attractive to businesses because it simplifies bookkeeping and makes it easier to track departmental budgets. The credit card companies like business credit cards because it ropes in a lot of big transactions.
If you are trying to reestablish your credit that has gone bad you'll be wanting a bad credit credit card.
Good Places to Shop for Credit Cards on the Internet
There are many good websites from which to shop for credit cards. This is convenient for the credit card companies because they can showcase their offers. Again, this fosters competition on a scale that had not even been imaginable earlier.
But you need a good third party overview of the industry. The Federal Reserve Board has some good info about what you need to pay attention to when applying for credit cards online.
There are many good credit card sites out there. The page design and layout is usually clean and easily navigable. Most of the sites feature credit card reviews and credit card comparison, credit education, a blog, and definitions of categories of credit cards. Card offers may also be searched by category, streamlining your shopping time.
However, you should always be aware of the risk of online fraud when you are shopping for credit cards. Make sure that the site where you are applying for a credit card is safe.
Once You Have Your Card, Stop the Pre-Approved Mail Offers
You know what these are, you get these annoying pre-approved credit card offers in the mail all the time. They are not only irritating but they are dangerous. For instance, if they are not properly shredded or get lost in the mail and fall into the wrong hands, someone else might just apply for credit in your name. And get the card!
But the good news is that you can opt-out of these mass mail campaigns. Go on-line and opt-out. There are many sites where you can do that. Under the Fair Credit Reporting Act (FCRA) you have this specific right. You may opt-out for a five year period or permanently. (You may opt-back in at any time.)
What this does is tell the consumer credit reporting companies to refrain from including your name on their lists that they provide to creditors and insurers in order to make firm offers of credit or insurance that you did not directly and personally initiate. It is a horrid practice but it is done without advertising the fact.
Use Your Credit Cards Responsibly
The main thing to remember with credit cards is to use them responsively. It is best to not build debt on credit cards because then your “bargains” will end up costing you an arm and a leg. Strive to pay each card off at each billing cycle to avoid interest. This is the way to make your credit card work for you. You can have your purchases all month and still generate your bank account interest on your money until you pay the bill.
Read about the history of credit cards here....