Credit Cards That Work For You - A Quick Guide

The only thing that is constant in this world is change and that is entirely true for interest rates; these rates rise and fall dramatically annually. But if you think about it, credit cards have tiny reduction rates compared to interest rates. Is this something you can work on? Well, you can actually save a lot on your credit card bill if you are smart in using your card; find out how!

Did you know that people pay billions of dollars in a year just by the interest alone from using their plastic? This makes credit card one of the highest priced forms of borrowing there is. But you can change all of that if you know how to use your credit card properly. The main reason why people pay so much interest is because they use their credit cards in the wrong way.

You have to know that interest rates are unimportant when it comes to how you use your credit card; if you want to know how to properly use your credit card then you better take the time to read this article.

There are two different types of cards that you can use.

There is the normal credit card that is generally the first and the most often used credit card since it has no annual fee and the interest free period can reach to almost two months after the initial purchase of using the credit card.

For some people this is their number one choice of credit card because of the free credit period. But after the free period, you will see that the interest charges will hike up so high that you would normally get around nineteen percent interests. This card might be the card that you have right now; it has a credit limit preset and you will be repaying at least five percent of the total balance you owe each month. The rest of the balance just sits there for charging you interest.

The charge card is the second type of credit card and it is called the charge card for a reason, it might look just like the same card but they are actually very different from the normal credit card. 

 This card is used this way; you spend over a course of thirty days and it is charged in a normal way but by the end of the month you are expected to pay everything in full. This means you will be using the banks money for up to fifty-five days. After the fifty-five days you will have to pay it off in full before you can start the process again. This type of card will have an annual fee though.

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