Credit cards are a part of modern life. You may avoid using them most of the time but chances are that you carry one around for emergencies or use one to make big purchases. As a smart person, you already know about the basic things that you want to look for in a credit card: low interest rates, great introductory periods and limited fees. However, those basic things aren’t enough if you want a truly great credit card that suits a twenty-first century way of life. There are some other features that you should make sure you look for when getting a new credit card. Those features include:
- Clear compliance with the new credit card rules. The United States government has created new credit card laws that protect your rights as a consumer. For example, your payments now go to pay off the highest interest balances on your card first rather than the other way around as has typically been done. All credit card companies must comply with these new rules. However, some companies are better than others at laying out the exact ways in which they are complying. Choose a card that makes this compliance clear to you.
- Get a green credit card. Being eco-friendly is important to most of us these days, right? That should be reflected in the 21st century credit card. One option is to get a biodegradable credit card; (Discover offers one called the Discover Biodegradable More). Another option is to get a credit card that donates money to green organizations with every purchase that you make; an example is the Visa Surfrider that gives money to ocean preservation organizations.
Make sure that you get rewards that you will use. As long as you have good credit, there is no reason that you shouldn’t have a credit card that gives back to you in the form of rewards. There are so many of these credit cards available today that it’s a financial mistake not to have one. Make sure that you get rewards that you will actually use, though. People who travel infrequently shouldn’t get a travel rewards card. People who don’t shop often should get cash back instead of points to buy stuff. Get only one rewards card and use it wisely.- Get a card that you can use when shopping online. Shopping online is increasingly common in the modern world. Although Paypal or Bill Me Later are sometimes options for payment, most people who shop online will use a credit card to do so. Make sure that you get a credit card that is widely accepted so that you can use it whenever you shop online. Choose a credit card that has great fraud protection since you do always run some risks of identity theft when shopping online with a credit card. And consider getting a card that offers cash back for shopping online through the credit card company’s online stores.
- Find a card with a flexible payment plan. One of the best things to happen recently in the world of credit cards is a shift to allow more flexible payment plans. A great example of this is the Chase Blueprint plan. This allows Chase cardholders to choose from various payment options for each purchase including immediate no-interest payments in full, long-term payments at a fixed interest rate or payment plans that allow you to pay off your total balance in a set amount of time that you select. You can mix and match these options. For example, you may choose to make immediate no-interest payments on all grocery store purchases and to pay off a large appliance purchase in six months at a set interest rate. Chase isn’t the only company to begin offering these payment plans so look around to see what options you may have.
Always review the terms of your credit cards carefully so that you know exactly what you’re getting in to when using one.
Subscribe to Financial Highway
Like what you just read and want to get more great content from Financial Highway? Doing so is easy, just enter your email address below and you'll automatically get Financial Highway posts sent straight to your inbox. Spam? I hear ya, but don't worry, Financial Highway will never spam you or share your email address with anyone. Oh and you can unsubscribe at any time with one simple click.
{ 4 comments… read them below or add one }
Credit Cards have always been something I’ve avoided like the plague for some time now. Namely due to usury, and my rather questioning nature when it comes to liability. I might settle on a pre-paid so I don’t have to worry about any silly debt bollocks (I consider debt to be very, very dangerous) but since credit cards are more liquid and quick than paypal (damn thing takes 2 weeks just to transfer money!) I think I might settle on the aforementioned pre-paid card, in spite of the fees.
Credit cards can be useful if use properly. Compering each one of them & choosing the best suits your lifestyle is a best way to start your credit. For me I’d go for a green credit card. Prepaid cards are also good for teens.
- MJ Smith
Some card issuers have found loopholes in CARD. I call it “The lobbyists take-over of the new CARD law.” Congress can never ever live without the lobbyists. The common man and woman are not what they used to be. Why should there be hole in the loop. Whatever law you study, there is always a loophole.
Thanks for the great post. I am researching certain credit card rewards programs right now, and there are so many to choose from! Between points for purchases, cash back or prepaid cards, and airline miles, I have to stop myself from using it just earn more prizes! This credit card stuff is tricky business, and you have to be mature about it or you will find yourself in a world of hurt!
{ 2 trackbacks }