New Credit Card - Get Credit Cards

This article discusses new credit card - get credit cards. We start with several  important tips and tricks to help you get the best credit card:

While applying for a new credit card consider the following tips. The most favorable card rates are offered by mid-size regional banks. Any person with a decent credit history can apply for and obtain a card from one of these banks, even if out-of state. But they won't come to you ... you have to seek them out.
Here's how: Start by exploring the banks near you. If their rates are too high, look to banks in states that have tighter lending laws. To find low-interest states, check the American Financial Services Association's Annual Summary of State Consumer Credit Laws and Rates (available at banks and from the Association Washington, DC 20005).

Beware: Don't assume all banks in low interest states have low card rates. Several major banks have moved their credit card operations to states where interest regulations are less restrictive. See credit card for more information.
If you tend to payoff your balance in full each month to avoid finance charges, a credit card's interest rate may be less important than its annual fee. Fees can run $25/year or more. But a dozen or so banks charge no fee at all. For a couple of dollars, Bankcard Holders of America will send you a current list.
Extras: In today's competitive lending market, many of the high-fee, high-interest banks are trying to seduce applicants with credit card enhancements. These extra services range from insurance and catalog shopping discounts to travel services to "deals" on everything from new cars to pest control. Unless you live in an isolated rural area, enhancements are rarely worthwhile. Any urbanite can get as good or better prices by shopping around.

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Short billing cycles: Reject any bank that bills on a 24-day (rather than 30-day) cycle. Check statements to find the billing cycle. Besides confusing your home bookkeeping, this will cut into your "float," or grace period, during which your loan is effectively interest-free. Also avoid: Any bank that double-dips by tacking on an extra charge beyond the annual fee) whenever you pay your balance in full.
More float: After you've chosen and received your card, the challenge is to keep interest expenses as low as possible. The best strategy is to make major credit-card purchases on or just before the "cut-off" date (the average purchase requires four days for processing), so they don't show up on your next statement but on the following one. Result: A float of up to 50 days. Check recent statements for your cut-off date. It usually falls around the same time each month.

Costliest cash: Credit cards are most costly when you use them for a cash advance. You get no float on these transactions, and an extra fee is tacked on to the regular interest charge. (A collateralized bank loan is far cheaper, even if it is more trouble to arrange.)
After establishing a good payment record for a year or two, many credit card holders are invited to apply for a gold or premium card with a higher spending limit. These cards also charge higher fees.

A patient consumer need not pay that premium. While your initial credit limit may range from $800 to $1,500, it can be raised as often as once a year, either automatically or at the cardholder's request. Most standard cards can eventually be boosted to a $3,000-$5,000 limit.

Dangerous scenario: For the past year you've been consistently revolving around the top of your current limit, never paying off the full balance. They you ask for a higher limit. In response, the bank decides you're a high risk and launches a thorough credit check. Reason:
This pattern often reflects an out-of-control consumer with several cards and a bulging load of credit. If the bank's suspicions are confirmed, it may revoke further charging privileges and demand that you payoff your current debt.
Premium cards: The American Express Gold Card offers a few additional services, such as free travelers checks. But the main reason people pay its higher annual fee is not value, but prestige.

Yet more exclusive is the American Express Platinum Card, reserved for members who charge a minimum of $10,000 over a 12-month period. This card offers numerous enhancements, including a travel service, personal check-cashing privileges of up to $10,000 and a year-end summary of charges for tax purposes. But with a very high annual fee, it's an extravagance.
Source: Herbert Mueller, banking advisor to the American Bankers Association and president and chief executive officer of North Valley Bankcorp.

What if the Bill of your new credit card Arrives Late? Credit-card bills must be mailed at least 14 days before the due date in order to be able to levy finance charges for late payment, according to the Truth and Lending Act. Best strategy: When a bill arrives late, save the envelope in which it came. The postmark will serve as documentation if you are unfairly billed.

Source: Consumer Information Center

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