Smart eCredit

Credit card offer - there are so many of them that it is easy to get confused. I receive tonnes of offers in my email as well as my mail box, and some of the offers are really quite enticing. I am sure they leave you wondering, "Should I, or shouldn't I?" Free air-miles, cash-back on purchases, lower gasoline bill, discounts on business expenditure, zero introductory rate.... But how do you really know which offer is right for you? Generally speaking, the offers that you may want to pay attention to are:

• Offers a fast approval

• Has the least bit of hassle involved

• Offers the lowest fees and charges

• Best suits their needs by offering and benefits in keeping with their lifestyle.

Credit cards have become an integral part of our lives. The structure of our society and in particular, how purchases are being made, makes it extremely difficult if not impossible, to get by without them. The challenge here is that there are dozens of credit card offers to choose from, each of which have specific characteristics and designed to achieve a particular purpose for a particular type of consumer. That being said, the first valuable point you should note is that not every consumer has the same habits. I will elaborate on this further on in this article. It is therefore very important that consumers first of all, know their purchasing habits, their credit management skills etc; and carefully select the credit card that is best suited to them.

Now because we are all different, a credit card offer that is best suited for me may not necessarily be suited for you at all. In fact, when it comes to choosing a credit card that is right for you, you need to look very closely and honestly at your habits. These habits include:

• Whether or not you would normally pay off your balance each month

• Whether or not you make your payments on time and stay with in your credit card limit

• How often you use or plan to use your credit card

• What benefits are best suited for your lifestyle.

Now let us take a closer look at these habits.

What are your repayment habits like? Do you typically pay off your balance each month, or do you allow some of it to roll over into the next month?

If you are in the habit of carrying forward the substantial balance, then you should seriously consider a credit card offer with a low APR - or Annual Percentage Rate in choosing a credit card . The APR is the interest rate that you will be charged on all outstanding balances. Therefore the higher the interest rate the more interest you will be charged. Conversely, the lower the interest rate the less interest you will be charged. Therefore if you are in the habit of carrying forward a balance on your credit card, it will be best for you to shop around for credit-card with a low APR. If on the other hand, you would normally pay off your outstanding balances each month, and do not normally carry forward a balance, then the APR will not really matter since you will not be paying interest.

In searching for a credit card offer that is best suited for you, another question you will need to answer honestly is how reliable will you be in prepaying your credit card debt. Will you be doing so on a timely basis? Do you typically stay within your credit card limit?

If you have problems keeping track of what your card balance is and may go over your limit, or you are often late in making your credit card payments, then when shopping around for a credit card you should look very closely at what the charges are for late payment and overdrawing your limit. A credit card with low charges might be best suited for you in this instance. Ultimately though, your goal should be to pay on time and to stay within the limit of your credit card.

Now how often do you plan on using your credit card? Do you plan on using it once in a while or do you plan on using it to very often?

If you plan on the frequent use of your credit card, then consider a credit card offer that includes credit-card protection. That way, if your credit card is lost or stolen, you will not be responsible for any transactions done on it during the time it is reported as lost.

Finally, in choosing a credit card, you should carefully examine your lifestyle. You should try to find a credit card offer with benefits that matches your lifestyle. For example:

• If you do lots of air travelling, then consider a credit card that offers travel miles, frequent flier miles and bonus points towards hotel accommodation etc.

• If you are always on the road - say a sales person - or you planning to purchase a new car, then you should look for a credit card offer with rebates on the purchase of gasoline, car maintenance costs, or on the purchase of new cars.

• If you are someone who likes to shop a lot, then consider a credit card offer that caters specifically for shoppers by offering rebates and rewards or points based on your purchases.

• If you are the owner of a small business, there are credit cards that cater specifically for this as well, allowing you to reduce the operating cost of your business by offering cash back, reward points and more.

• If you are a student, there are also credit cards that cater specifically for your needs. So you may want to look out for this type of credit card offer

As you should have realized by now, it is very important that you look very closely at your lifestyle and your habits in choosing a credit-card that best suits your needs. Choosing the wrong credit card can very easily turn out to be a debt trap. Know your spending habits and choose a credit card that is best suited for you.

To help you in the process of selecting a credit card with low interest and is best suited to your needs, I have attached an Excel spreadsheet that you can use as a tool in gathering your information and then making your final decision. I hope this works and helps you in selecting your credit card, and thus lowering your monthly payments. Please click here to download.