The credit card companies have put us through so much over the past few years. We have suffered slashed credit limits, more expensive interest rates and unreasonable fees. And then we’ve had the government getting into the fight to help protect us. The whole thing could turn anyone off the plastic once and for all. What is it even worth, really, we seem to ask ourselves often. Come to think of it, the credit cards that we all hold on to today really aren’t as rewarding as they might have been once. But you need to realize that the credit card market has completely changed over the past year. Whatever was the best credit card to get last year should be quite pointless now, next to the kind of innovative programs they’ve thought up at the banks.
This past year has been quite an eventful one for consumer credit card legislation. The banks have had to face up to new rules about how they can’t just raise your interest rates or manipulate your payments to suit then. What has resulted is a considerably reworked credit card market. If you’re looking for the best card to get, this would be a great time. They?ve brought out products unlike we haven?t seen at least since 1990. The market is that strong for the consumer today. Let’s take a look at what the best credit card to get today would be for different needs.
On average, every home in America owes about $8000 in credit card debt. Want to know how it got to be that high? No, it isn’t that American households are irresponsible with their personal finances. Each month, whatever you paid, the banks would apply it to whatever you owed the least interest on ? just to suit their bottom line. According to the new rules though, whatever you pay has to first be applied by the bank towards your highest interest debt first. If you are interested in wiping that credit card debt out, today’s credit cards are going to make it a lot easier on you.
If you want to manage your debt today, you’d be best off with two separate cards ? one that gives you a great low interest rate on purchases, and another card that gives you a great balance transfer deal. You’re supposed to make all your purchases on the low interest rate credit cards and pay them off every month. But if you can’t pay them off, you’re supposed to transfer your balance to the other card that gives you a low transfer rate. Your purchase card could be the Citi Forward or the Simmons First Platinum Visa, and the Discover More could be your low transfer rate card.
Under the new credit card act, it’s nearly impossible for anyone under 21 to get some spending power, unless they have a cosigner or a real income. If you are a student, you now have very little choice. If you try to get a card that’s not specifically intended for students or other people with limited credit, it could get to be extremely expensive ? so expensive that it might hurt your credit score. But even student credit cards can be less than desirable.
The credit card company will count your student loan as a source of income and give you a big fat spending limit ? and you can easily overspend your way into insurmountable debt. The best credit card for the students should be something like the Citi mtvU Platinum Select Visa Card for College Students.where you actually get awards for a good GPA and you get rewards for paying back on time. They try to teach you good spending habits early on.