Here is a brief dossier:
- Regular cards/Business cards are cards that give you a spending limit based on your income tax papers. The business card is just like a regular card, except that it comes with some schemes that dangle carrots before you.
- Charge cards are cards that are linked to your bank account and they charge your account the minute you swipe the card. You cannot carry forward a balance with a charge card.
- Reward cards are credit cards that earn you points every time you swipe them and such points are redeemable for some goodies (air tickets, supermarket goodies, etc.) at selected establishments.
- Then there are cards for people who have a bad credit history. These cards carry a low spending limit and a higher rate of interest.
- Prepaid cards are another type of credit card that are mostly used by teens and some kids too. The parent makes a deposit and the card is valid until the deposit is used up.
- Secured credit cards require that the cardholder deposit a certain percentage of the credit limit upfront into their bank accounts.
Once you have decided what kind of a credit card is right for you, do a comparison between different brands of cards.
Compare their rates of interest (APR = Annual Percentage Rate) and also check whether they carry an annual fee.
What grace period or no-payment period they offer you, how do they calculate the interest, whether the rate of interest is an introductory rate, whether rates of interest will vary on cash withdrawals, billing cycles, penalties on balance transfers, and so on.
Voila, there you are!
If you follow these basic guidelines, you will be successful in pocketing the right 0 balance transfer credit card that suits your needs.
And that is the easy part, the difficult part lies in maintaining a credit card and keeping your credit history clean.
But, that’s another story!