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Credit Card Reviews: Finding the right credit card is not easy since there are literally 100's of banks and financial institutions offering them. Each day we all receive junk mail with credit card offers, most of which we just tear up and throw away. We all have different needs when it comes to building our credit and using a VISA, Mastercard, Discover, or American Express card. There are certain types of credit cards that are good for students, better for those that don't pay off their bill each month, and great for travelers who want to accrue reward points for hotels, airline miles, or other purchases. The general rule of thumb is that the better your credit score, the lower your interest rate will be on your credit cards. The hard part can be getting the first credit card in which to establish your credit rating. If you attend a college or university then you probably have access to sign-up for a new credit card right on campus. In any event, even if you have to get a secured line of credit for your first credit card it's still a good idea. Although experts say Americans use credit way to loosely, you need to develop your credit "worthiness" by using and paying off at least 1 credit card account over time. If you are willing to part with your social security number and other pertinent personal information online, you can you fill out applications on the Internet for credit cards without ever talking to a live person. Just be careful for the teaser rates you get offered like 0% interest on balance transfers or low interest rates that suddenly go up after 6 months. My personal feeling is that once you understand how credit cards work, you can definitely use them to your advantage. Without a credit card it would be hard to get a rental car, book a hotel room online, or even order concert tickets over the phone. Credit has become just a normal part of our lives that living without it seems impossible for most. As a general rule, always pay off your monthly balance so that interest doesn't start building up on your account. Many people don't understand how a 25% APR credit card can really sock it to you if you don't pay off your balance each month. The interest alone will eventually catch up to you and you could be paying $100/month just in interest. Establishing your credit history is a wise thing to do in small increments so that you don't get in over head (believe me these banks will let you). In recent months the subprime mortgage crisis has hit all aspects of the financial world and now it's harder to get credit, let alone the interest rates are higher than ever to keep things in check. The only people getting home loans these days are those with perfect credit scores, the people who pay off their credit cards each month in full and keep a tidy personal balance sheet. Even if you have bad credit, you can still get a credit card, it will just be harder and with higher interest rates and perhaps a yearly fee to own the card. We went to our favorite website on "Credit Cards" at Creditcardguide.com to find out which cards are the best in several categories (see below). All the offers were current at the time of this article (Jan 2008). Best Credit Card: One of the most well rounded credit cards we could find is the Citi Platinum Select Card from Citibank. The card offers 0% APR on balance transfer and purchases for up to 12 months, no annual fee (that is important), and APR as low as 9.49% even after the introductory period. Cash advances are not given at 0% APR. The credit card comes with the Citi Identity Theft Solutions program - identity theft is a growing problem and having piece of mind while using your card is key. You also get $0 liability on unauthorized purchases so if your card does get stolen, just report it so you aren't help responsible for things the thief is buying. Lastly, you get access to the secure website that Citibank offers so you can manage your account online. All these features add up to the fact that Citibank is leading the way in terms of credit cards. The one drawback with this card is that there is no rewards program built into it. 0% APR Credit Card: We are all familiar with the "0% APR offer" that many credit card companies through out as a teaser campaign to get us to sign up. Chase Platinum Visa Card is one of these cards that gives you 0% APR on purchases and balance transfers for the first 12 months (cash advances do have fees and aren't given 0% APR). There is no annual fee and you also get the benefit of travel services like Auto Rental Collision Damage Waiver and Worldwide Travel Accident insurance. I have found that Chase does an excellent job with 0% APR offers for balance transfers, the process is smooth and easy so you don't have to worry about paying high interest rates of other cards (just transfer the balance). The APR will jump up to 13.49% after the introductory offer but 1 year should be enough to get your bills in order. Travel Rewards Credit Card: Airline credit cards used to be the way to go - if you were a frequent flyer with say United Airlines it only made sense to get a United Credit Card and build miles and rewards that way. Today, credit card issuers have simplified the process for us by offering cards like the Capital One No Hassle Miles Rewards. There are blackout dates or seat restrictions and you can choose from several airlines, not just one when redeeming points for free flights. Many will offer you lots of bonus miles to start the account (we have seen some go as high as 20,000 miles extra). I personally use the Southwest Airlines Rapid Rewards VISA Card simply because I fly Southwest to many business and personal destinations. The rewards program with them is great, not only do you accrue free flights faster than most cards, but you get added bonuses like rental car discounts, hotel rooms for cheap, and other deals when buying certain items. If you are going to travel a lot for work or pleasure, get a rewards credit card that benefits you the most. Student Credit Card: Whenever I think of my kids using credit cards I cringe at the thought. It's really a double edged sword when it comes to giving your teenagers or college age kids a credit card. You know they need to establish a credit history but at the same time you want them to be responsible (that's the hard part). They will probably make mistakes and charge too much or not be able to pay the bill each month at some point. The best situation is to set them up with a secured credit line credit card. In this case, you deposit money into an account with your bank and they issue a credit card that has a preset spending limit and once the funds are gone, the card is no longer usable. It's a great way to teach your kids how using credit cards is only acceptable if there are funds to pay for things. Other student credit cards come with low credit lines - $500 to $1000. This will help control their spending habits and keep their balances within reason. The Discover Student Card is probably the best solution for helping your child start building their credit history. They get cash back and 0% APR on initial purchases. Remember to warn your child or any young adult for that matter, that funding their college tuition or bills by using a credit card is STUPID. Student loans are a better option. Business Credit Card: It used to be that business people would only use American Express (AMEX) cards for all their expenses, but some hotels and restaurants don't accept AMEX so they had to adapt and use other credit cards. AMEX is still one of the leading business credit cards in the market, but several other companies have swooped in to take market share from American Express and offer similar rewards programs to business people who use them. Some of the top rated business credit cards are the Advanta Platinum Business Card with Cash Back OR Travel Rewards, CitiBusiness Card, Discover Business Card, and the Business Green Rewards Card (American Express). Key features to look for are no preset spending limits, a good rewards system with points accrued for hotels, airlines, restaurants, rental cars, and more. Since most businesses pay their bill each month in full, you should be able to get a reasonably low APR on any card you select. If you are not a rewards type of person, look for the cards that offer "cash back" at the end of the year. Don't feel like only big businesses get good deals, many of these companies offer great packages for small business owners with generous credit lines, 0% interest, and introductory offer with low interest rates. © 1999-2008 Funskins.com - Product Reviews