Compare Credit Cards with Financer.com
At Financer.com we want to offer you financial solutions that will improve your financial future.
Because of this, we help you find credit card offers that are most advantageous for general consumers when it comes to staying out of debt.
Take a look at our offers above and compare to see which offer is the best fit for you.
Types of Credit Cards
Standard credit cards usually offer no benefits or rewards. On the upside, they are very easy to understand and straightforward to use.
Choose this type of credit card if you are not interested in earning rewards.
Balance transfer credit cards come with the ability to transfer balances. They offer a low introductory rate on balance transfers for a certain period of time.
Balance transfer credit cards are a good option if you want to save money on a high-interest rate balance on an existing card.
Rewards credit cards are pretty self-explanatory and there are three basic types of rewards cards: points, cashback, and travel. Some people prefer the flexibility of cashback rewards, while frequent travelers like to use travel rewards cards.
Secured credit cards are ideal for borrowers who don’t have a credit history, or who have a damaged credit history. Secured credit cards require a security deposit to be placed on the card and your credit limit will usually be equal to this amount.
Business credit cards are aimed specifically for business use and they offer business owners an easy way of keeping their personal and business transactions separate.
When applying for a business credit card, your personal credit history is considered as you will be held accountable for the balance.
It’s convenient. With a credit card in your wallet, you rarely ever need cash or an ATM.
Efficient record keeping. Easy expense monitoring and monthly budgeting through monthly statements.
Purchase protection. Credit cards often offer extended warranties on items you purchase.
Balance surfing. You can quickly transfer your high-interest balance to a lower-interest card.
Earn rewards. Credit card holders often earn reward points for using their credit cards, which they can redeem on travel, cash back and more.
How a Credit Card Can Benefit You
How Do Credit Cards Affect Your Credit Score?
The average American carries four credit cards. However, this doesn’t mean that four credit cards are ideal.
In fact, you might be shocked to learn that you technically need to have 21 lines of credit open to hit the perfect 850 FICO score.
A FICO score is a credit score created by the Fair Isaac Corporation (FICO).
Lenders will use your FICO scores along with other criteria to assess credit risk and determine whether to extend credit to you.
FICO scores use data in five different areas to determine a borrower’s creditworthiness: payment history, current level of indebtedness, types of credit used, length of credit history, and new credit accounts.
FICO® Scores Explained:
|FICO® Score||Rating||Lending Opportunities|
|300-579||Bad||Loan applicants may struggle to get credit without a deposit. It can be difficult to be approved for credit with this rating.|
|580-669||Fair||Applicants may still struggle to get optimal lending rates and may still be rejected by certain lenders.|
|670-739||Good||Most lenders will provide credit to those with good lending however they may offer average lending fees.|
|740-799||Very Good||Most applicants may receive better than average lending rates.|
|800-850||Excellent||Less than 22% of Americans have excellent credit. Those with credit scores at this level are considered optimal applicants.|
In many cases, opening a new credit card can actually boost your current FICO score overall, some more than others.
Example: You have a credit score of 600 but only have one credit card with a $2,000 limit. By opening a second card with an $8,000 limit on it, you might see your score shoot up by 80+ points on your FICO reports.
There are many reasons for this, but basically, if you can show creditors that you can successfully manage large lines of credit, they consider you trustworthy.
This behavior is viewed as a positive to other lenders who are willing to now work with you more because you display a healthy relationship with managing money.
The Risks of Having a Credit Card
There is always a risk when opening up new credit cards. If you overextend yourself and are unable to pay down your new credit limits, you may find yourself in a problematic debt cycle.
A debt cycle where you are unable to pay your bills will be detrimental to your credit score.
Any new credit card applications will cause a hard inquiry, which might negatively impact your credit score by 1-4 points. However, for the general population, the upside HEAVILY outweighs the downside.
Approval means access to more credit, which in turn means a higher credit score overall. Typically people don’t notice too much of a credit score hit if they are applying for less than one new card every four months.
- If you do notice a large hit to your credit score, you can generally wait about three months, and your credit score should recover overall if there are no other outside influences.
Sometimes a significant dip in your score can be caused by too many new credit applications. Credit bureaus see too many applications as high risk and assume your creditworthiness is low.
How to Use Your Credit Card
Credit cards are so convenient because they are accepted virtually everywhere and don’t require hitting the ATM or carrying around cash.
Just swipe your card or insert the chip in the card reader, and you’re on your way.
But this swipe-and-go process can also lead you down a dark path of interest-bearing debt.
Using Your Credit Cards Responsibly
Credit cards can be a great benefit to have when you use them correctly. They can earn you free vacations and cash back options, but they can also open a pit of debt that can throw your financial situation for a loop.
Here’s how to use them responsibly:
Spend within your means
Banks will occasionally call and offer higher lending amounts based on your income and credit card payment history. Make sure you are still leaving within your means even if you have a higher limit.
Only buy what you need
Never buy anything with a credit card that you do not have the cash to pay for.
Find the best offer
Compare credit card offers often and focus on those with o% interest and reward points. Once you have opened an account, you don’t have to keep it.
Keep up with payments
Always pay your credit card in full when you receive your statement.
What to Consider
It’s important to find the best credit card for you. A credit card can be useful and destructive, so before you compare credit card offers, ask yourself these questions:
- Can you limit use to just your daily expenses?
- Are you committed to paying your credit card off each month to avoid interest charges?
- If it’s a variable-rate card, can you afford the constant interest rate fluctuations?
- What credit limit do you need? Use the calculator at Financer.com to compare 40 lenders’ credit limits.
What You Should Know About Credit Cards Rates, Fees and Penalties
Card issuers often find subtle ways to take money from you. Balance transfers and cash advances, while attractive upfront, include fees. Some companies even charge a yearly fee just for having the card.
These fees are part of what allows credit card companies to offer these types of deals. Make sure you weigh out all your options before taking advantage of these and other offers.
You also need to take penalties into consideration when shopping for a credit card. Late on your payment? There’s a penalty. Go over your limit? There’s another penalty.
Each credit card has different penalties, so make sure to review these on the off chance you run into one.
- Horizon Gold Card with $500 unsecured credit limit
- No credit check needed, Bad credit score accepted
- 0% APR on credit
- One time activation fee: $5. Monthly membership fee: $24.95
How to Find The Best Credit Card Rates
Credit card rates can vary greatly between issuers, and the only way to find the best one for you is to shop around. But don’t search at random.
Instead, write down a list of what you need in a credit card and put them in order of importance.
This will help you whittle down the massive list of available credit cards to just a few that offer the best benefits for your situation and help you learn how to compare credit cards.
Here are some of the rates to consider when shopping for a credit card:
- Promotional interest rate
- Fixed interest rate
- Foreign transaction rates
- Balance transfer rates
How Can You Lower the Interest Rate on Your Card?
Since you agreed to the credit card terms, you may have a hard time getting the issuing bank to reduce the interest, but it’s not impossible. Here are a few tips to help drop that interest rate:
- Call your lender and ask for a lower rate.
- Search for new-customer deals for your card and request that rate.
- If all else fails, sign up for a new card with a lower rate and transfer the balance.
Always remember that credit cards are like any other financial service: Everything is negotiable. Don’t be afraid to call your credit card company and ask them to lower your interest or waive an annual fee.
How long does it take to get a credit card?
Most credit card applications are fast and can be done online. The acceptance process can take up to two weeks from application to receiving your card in the mail.
How old do I have to be to get a credit card?
You have to be at least 18 years of age to hold a credit card account in your name.
How many credit cards should I have?
Some experts say you should have 2 – 3 credit cards. However, this all depends on your debt to income ratio and the limit on each card. You should be able to build a strong credit score with 3 or fewer cards as long as you are keeping the balances low, paying your other bills on time and managing your debt ratio efficiently.
The worst the company can say is “no.” But if you have a steady payment history and have been a customer for a few years, you may be surprised at what you can ask for and receive.