So what sort of user are you? There are several general categories but everybody is different and you will probably not fit exactly into any category. You should decide which is nearest to you to see what sorts of credit cards might be suitable.
User Type:
1) You pay off all spending in full each month and never carry over a balance.
2) You make partial payments each month and use the credit card to buy products or services.
3) You make partial payments but don't use the card for any purchases now.
4) You make minimum payments but don't use the card now.
5) You make minimum payments and continue using the credit card for purchases.
If you fall into the category 1 type then you should be looking at a credit card with rewards as either cashback or some sort of points earning scheme. There is no point in having 0% interest as you won't benefit.You should, however, make sure you are not paying an annual fee for the card.
If you are a category 2 type then you should be looking to reduce your interest payments. You would probably be best off with two different credit cards. Get one that is zero% interest for balance transfers and transfer as much of your balance as you can onto that. Then look for a low interest rate for purchases card. Get that and use that one for new purchases. Do Not use the interest free one as you will probably pay interest on purchases. If you can get one that is 0% for purchases for several months then use the savings to pay off as much as possible when the 0% period ends.
If you are a category 3 type then you should get a 0% interest for balance transfers credit card. If possible get a zero% for the life of outstanding balance credit card. Try to use the extra savings you make to pay off more of the balance when the 0% period finishes.
Type 4 people should be trying to pay more than the minimum to reduce their debt as minimum payments can mean it takes up to 30 years to pay off your debt and you pay a lot of interest perhaps up to three times the cost of the purchases. You should try to get a 0% interest credit card for balance transfers and pay as much as possible each month once the interest free period finishes. After the interest free period has run out it may be worth considering another 0% credit card or a consolidation loan at a low rate of interest but if you do this you must avoid adding new debt onto the credit card.
If you are a Type 5 person then you should consider getting two different credit cards. One 0% interest for balance transfers and one for 0% (or low rate) for purchases. You may well be developing problems for the future and you should look carefully at your spending habits and budgeting plans. If you can afford to pay more then you should do so. If you can't afford more then consider a consolidation loan but keep a very close eye on your budgeting and avoid un-necessary expense and try to avoid using your credit card.
Visit this recommended site to read more about your options:-Credit Card Selector (Opens in a new window)
Before you can get out of Prison you must recognise that you are locked inside. - Anon
