Knowing the full power behind credit cards

Credit cards have greater functions than what meets the eyes.

08:57 17 November 2013

Apart from borrowing money, there are many other productive things to use credit cards for. Credit cards save people from the danger of performing huge amount of transactions with cash, protect users from inferior goods, and also helps in building credit rating.

• If you intend to clear your balance with credit cards whenever you shop, the loyalty cards are ideal for you- A card that offers cash back or loyalty scheme. You can find many out there by performing a careful and proper research.

 

• If you want to clear your balance with 0% interest, you can find credit cards out there offering 0% balance transfer period for up to 23 months with a 2.8% fee but the interest makes its way back to 17.9% APR after 23 months.

 

• If you are in need of a credit card to use on your trips abroad, then you have to search for a card with 0% interest on balance transfer and purchases of items for nine months. The card should also have a 0% foreign currency fee. Keep an eye on the cash withdrawal fee.

 

• If you want to make some expensive purchases and settle the bills little by little, you can get hold of a credit card that charges 0% on balance transfers for 9 months, and the same 0% on purchases for 16 months will serve you well. Remember the interest rate may climb up to its standard APR after these periods.

 

• If your credit record is poor, it is still possible for you to get a credit card but the card will have some certain restrictions on it. You can still work around these restrictions to pave a way back to good credit record.

There is a credit card for everyone. Knowing which cards to choose will take you further toward getting more bang for the money.