Credit cards used to be simple.  There was one rate, one feature and really only a handful of issuing companies.  Those days are long gone and now you need to know about the different types to determine which is right for your lifestyle.

Standard credit cards are the most common and are available in most financial institutions.  They are unsecured, which means you do not have to put down a security deposit.  There are several different interest rates handled by these cards.  There’s the balance transfer rate, which allows you to transfer a balance from another card to a lower rate on the credit card.  There is the regular interest rate for purchases, which usually starts at zero percent for a set amount of time.  And the cash advance rate, which is used when you use the card at an ATM to get cash.

There are credit cards with rewards programs. Finding a good credit card guide can help  Typically these have a slightly higher interest rate than standard credit cards but only by about a percentage point or two.  These cards allow you to earn incentives by using the card.  Some credit cards will offer a certain percentage of your purchases and give you cash back for it.  Some cards use reward points, usually at one point per dollar spent, and these points can then be redeemed for other prizes.  Other cards earn rewards that can specifically be redeemed for discounts on airline tickets or hotel reservations.

Bad credit or credit repair cards are a good solution for those who cannot qualify for a standard credit card.  Most often the interest rate is a few percentage points higher than any other card.  These come in two types: secured credit cards and prepaid credit cards.  Secured credit cards require collateral in order to be used.  Typically this means putting a security deposit on the card as proof that you can pay the money back, this is usually an amount equal or greater to the credit limit.  Prepaid credit cards are technically not credit cards but they are accepted and used like them.  The biggest advantage of them is the lack of finance charges and the lack of any debt.  With these cards you determine your own credit line by paying for any purchases beforehand.

Credit cards balance transfers is when you take your balance from one credit card and move it to another one. Most people do this in order to get a lower interest rate and therefore to pay less. Most often times once the transfer is complete, the old account is closed and the person decides to use the new card from now on, however some people transfers balances and then continue to use both cards.

Credit Card Balance Transfer Tips

If after examining all of the information about both credit card accounts and realizing that the new offer does carry a lower interest rate then there are certain things you must be aware of before doing the transfer. Read on for some balance tips.

Even if you decide to transfer a balance from an old to a new card make sure that you make the minimum monthly payment on the old card. Do not assume that the balance transfer will take care of the payment because it likely will not. This is a credit risk you are better off not making.

The transfer might take a few weeks to be processed and in the meantime you will have to deal with a late fee that you did not count on. You will then notice that the interest rate has changed but not for the better and your credit report will be affected adversely. Bear in mind that balance transfers are not always accepted so your dealings with your old company may not be over. Whether you stay or go you want to always be on good terms with whatever company you are a customer of.

Even if the new credit card issuer assures you that the transfer has gone through, verify it with your old company. If you would prefer not to call the old company then wait until your monthly statement arrives in the mail. Once you see the zero balance showing then you can breathe easy and know that all is well. That will also signal the end to making monthly payments to your old credit card issuer.

When you apply for a credit cards balance transfers, regardless of which company you deal with, make sure you fill out the application properly. Do not forget to fill in any of the blanks and never lie as this is fraud and can get you in deeper troubles than simply just having your request denied! Always read the application over carefully before you send it in to scan for any errors.