The Credit Courier

What would we do without credit cards? They are so pervasive that most people can’t imagine trying to live without them. Whether it’s MasterCard, Visa, or Discover, almost everyone has a piece of plastic in their wallet.

The Best Credit Cards

The best credit cards are those with the lowest rates and the best rewards. When you’re looking for a credit card, try to find one with no annual fee and a low APR.

APR stands for annual percentage rate. This number is an annualized interest rate that allows you to compare credit cards more easily, since different credit card companies have different methods for computing interest. If you look at the interest rate the card advertises, these differences can mean a very different cost between two cards with the same rate, so you should always look at the APR when comparing rates on credit cards.

What’s So Great About a Sears Credit Card?

What’s so great about a Sears credit card—or a Target credit card, or even a Firestone credit card? Store credit cards often offer special deals for customers who charge their purchases at that store. For example, if you sign up for a Southwest credit card right now, you can get two free flights after your first purchase.

I didn’t read the fine print on that offer, so you’ll have to do your own due diligence, but you get the idea: Your Exxon Mobil credit card might offer discounts on gas, and your Disney credit card offers perks when you visit Disney World or go on a Disney cruise.

Credit cards for Bad Credit

No discussion of credit cards would be complete without a section on bad credit credit cards. The easiest credit card to get for people withe bad credit—or for anyone, really—is a secured credit card. The reason that secured credit cards are such easy cards to get is that they require a deposit up-front, and this deposit stays with the bank for as long as you have the card or until the company decides to let you upgrade to an unsecured credit card.

Debit Cards

Debit cards look like credit cards and can be used like credit cards, but they are not credit cards. When you use a debit card, the money comes out of the account that is tied to the debit card, usually a bank checking account. Sometimes other types of accounts offer debit cards as well.

Prepaid Credit Cards

A prepaid credit card is like a debit card, but instead of having a checking account with a bank, you load money directly onto the card. These cards are often available at big stores like Walmart, where you can load money onto the card at the customer service desk. There is usually a fee either for adding money or for spending it, or both. Some cards, like the Account Now card, even allow you to use direct deposit to have your paycheck sent to your card automatically each time you are paid.

Credit Card Offers

If you have good credit—or even decent credit—you probably get credit card offers all the time. You might even get credit card offers for bad credit credit cards if you don’t have good credit! The point is, not all of these offers have good interest rates and terms, so evaluate them carefully before choosing a card and respond only to the best credit card offers.

Student Credit Cards

Student credit cards are designed for college students who are just getting started building their credit. Many times, they have no annual fee, which is a big plus for any credit card.

Business Credit Cards

Business credit cards offer features and rewards that appeal to business owners, such as discounts on office supplies or other rewards and tools to help with tracking expenses. You can often get a supplemental business credit card for each of your employees who regularly make purchases. These employee cards can each have their own spending limit, which prevents employees from going on a major shopping spree at your expense.

The Best Credit Card Rewards

There are so many different rewards programs out there that it is hard to say which one is the best rewards credit card. It really depends on what you’re looking for. It makes no sense to apply for travel rewards credit cards if you don’t travel! Look for credit cards with rewards you will actually use.

Regardless of whether you end up with a Union Plus credit card, a Belk credit card, or a Juniper credit card, you should always use your card responsibly. You don’t have to look too far to see what happens when you borrow more than you can afford to repay. Avoid racking up too much credit card debt by taking care to charge only what you can pay off in a single billing cycle, except in the case of a true emergency.