Need a New Credit Card? Let the 3 Ps be Your Guide

You've decided you need a credit card but......

Are you buried under an avalanche of unsought postal application forms? Are you blinded by the bewildering array of ads in black and white mass media and on television screens? Are you puzzled by the nimiety of promotional stuff from your bank, or other companies you make business with?

When it come ups to applying for a credit card, information overload often forestalls people from making a rational, informed decision. The simple strategy suggested here will allow you to quickly place the to the point information you need, narrow down your choices, and do it easier to determine which card is the best one for you.

Whether you are applying for your first credit card or are adding to your portfolio of plastic, these guidelines will assist you focus. Used in conjunction with an online credit card directory, the full procedure of identifying and applying for a credit card will be simplified and speeded up.

THE STRATEGY:

Firstly, learn the lingo - understand the terminology and how each characteristic will lend to your credit costs. http://www.federalreserve.gov/pubs/SHOP/ is an first-class beginning of elaborate definitions.

Here are the chief terms you need to understand in order to compare credit card deals:

A.P.R - annual percentage rate of interest. Rates can be tiered, fixed or variable. Different rates can apply to outstanding purchase balances, cash advances, and balance transfers.

Introductory A.P.R. - A reduced rate for a set clip time period (this varies), after which it returns to the chief A.P.R.

Fees - some are waived and others are charged at a level rate or as a percentage of the outstanding amount. Fees can be charged for card usage (on an annual footing or monthly), for account set-up, balance transfers, late payments, cash advances, exceeding or increasing your credit limit, and other assorted items.

Grace Period: the clip time period (10-28 days) that you have got to pay your measure without incurring a late fee.

Next, you need to place your three P's in order of importance: Profile, Priorities and Preferences.

Credit cards, like people, are not created equal - the best option for you will not be the best option for everyone. The card your friend urges or the 1 your bank advances may not best lawsuit your personal set of circumstances.

Your PROFILE:

a) Make you have got no credit history, a bad credit rating, or are re-establishing your status? If so, you should immediately zero in on specialised options such as as as secured credit cards, unsecured limited-credit cards, and loadable debit entry cards.

b) Make you fall into a targeted class such as student or business? If so, concentrate on these tailor-made options.

c) Make you always clear your monthly balance? If so, cards which have got no annual fee or offer particular features, such as as cash back or frequent circular points, would be more than appropriate than those with low A.P.R.s because no interest charges are incurred when the balance is paid in full.

d) Make you carry your balance over each month? If so, then cards offering a low A.P.R would be the best pick - the lower the A.P.R., the lower your interest charges.

Your PRIORITIES:

Having used your profile to highlight your chief options, you should now determine which card characteristics are most of import to you and rank them. You may wish to back up a charity or need to collect frequent circular points, or you might travel widely and must guarantee that you are able to utilize your card in as many states as possible. Where credit cards are equal on, for illustration A.P.R. inch your profile, usage your precedence listing to separate your most appropriate options.

Your PREFERENCES:

Having narrowed the field of credit card possibilities by matching options with your profile and priorities, you can now fine-tune your search by applying your preferences. The chief work have already been done, so at this concluding stage you can allow yourself to be more than frivolous or bizarre - exercising your personal preferences. You may experience a certain loyalty towards one peculiar type of card, desire free gifts, or simply dislike another card's coloring material or designing - it's your prerogative.

Finally, armed with the 3 P's strategy, you can now see an online credit card directory and complete the comparison, choice and application procedures. Not all directories are created equal, but a good illustration is http://www.globalcreditcardindex.com. This well-designed website is informative, user-friendly, and allows you to search the comprehensive information alkali and compare options with your 3 P's strategy in head (currently only American cards are included but United Kingdom options will be added soon). Online applications for all the cards listed can be submitted directly from this website, but approval modern times will change depending on your personal credit history and the type of card chosen.