The Idiot's Guide to Selecting a Credit Card - Part II

Summary: There are literally hundreds - possibly thousands - of credit card offers available to consumers these days.

There are literally hundreds - possibly thousands - of credit card offers available to consumers these days. And these days there are more things to compare than just interest rates and fees. Now, credit card holders can be rewarded for their using credit cards. Or, if you're a business owner, you might find extra features and perks with a business credit card. In this article we'll go over the basics of some of these above-and-beyond features of credit cards. Whenever you're thinking of applying for a credit card, it's always best to compare all of their features so you get the best credit card that matches your financial lifestyle. Rewards Programs Probably one of the most attractive features of credit cards these days is the rewards programs that they sometimes offer. Credit card companies will often reward their cardholders for making purchases with the cards. Rewards can range from airline tickets to cash back to hotel discounts, depending on which credit card you apply for. The rewards are usually based on a point system - with each dollar you spend using your credit card, you are rewarded a certain number of points that are collected in your account. When you have a certain number of points, you are able to redeem them for the reward that your credit card offers. How can you use these types of cards to your best advantage? Think about what you do the most - do you travel? Do you drive a lot and use a lot of gasoline? Do you shop at a particular store a lot? Consumers usually choose rewards credit cards that match their spending habits the best. If you travel a lot, it would be best to get a credit card that offers airline rewards. If you're on the road a lot, try finding an offer that gives you a discount on gasoline, or cash back for gasoline purchases. One thing to remember when selecting a rewards program - make sure that once you choose it, it fits your needs exactly. For instance, if you fly frequently but usually fly on Midwest Express, make sure your credit card offers rewards for Midwest Express and not American Airlines. If you're a big driver, make sure you're getting rewarded for using the gasoline that's most available to you - BP, Amoco, etc. There are some rewards cards that allow you a choice, but it's always important to make sure you're going to get what you expect! Business Features If you are a business owner, using a business credit card can help you with things like payroll, managing expenses, and managing employee spending. Business credit cards now offer features like: