Whether as a financial mainstay or as a just in case of emergency, just about everyone has a credit card – or a few – at their disposal these days. As well as being borderline impossible to reserve a vacation or book airline tickets without a credit card, they’ve also become a fantastic way to buy big-ticket tech items and earn a little kick back at the same time. The ideal credit card can certainly vary from person to person. The best thing is to take an honest assessment of your needs, including the potential usage patterns, and to figure out the best credit card to obtain, for your specific financial situation. So, these are some essential factors to pick the right credit card:
Banks want you to use their credit card. And in turn, they make their money by charging interest on the purchases that the user makes. Some users like to carry a balance, and therefore should look for a card with a lower interest rate. So, the interest charges will be lower.
Also, take note that some credit cards offer a lower introductory low-interest-rate offer. But it is time-limited, like for the first 12 months. And pay attention to the interest rate thereafter if you plan to have an ongoing balance.
Of course, you might be somebody who likes to pay off the bill promptly each month. So the interest rate matters little.
A credit card annual fee is the cost of being a card-carrying member. Some cards charge this annual fee that needs to be paid to continue using the card, while other credit cards have no annual fee.
While the simple answer is to seek out the card with a free or low annual fee, it is not always so simple. In some cases, the card with the higher annual fee also offers significant other benefits to justify the higher cost. So, be sure to factor these into the decision of the choice of card. Also, be aware of some cards that do not charge an annual fee for the first year. Or so as an introductory offer, but then charge annually thereafter.
Many credit cards offer a reward system, where the more that the user charges the greater bonus is offered. This reward can take different forms, commonly as a cashback, airline miles, or points to be used for the purchase of future travel.
This type of reward can certainly be a valuable incentive to use the card, as who does not like to get some free stuff. Be aware that the cards that offer these rewards often balance this giveaway with a higher interest rate, or higher annual fee. So, it may not be the best overall deal when considering your usage pattern.
Use CARD MATCH
Card Match is a clever little tool hosted by creditcards.com. Give them a few of your details and it will keep you up-to-date with any special offers and pre-qualified matches.
Even better, you may be targeted for extra sign up bonuses and other perks that you wouldn’t ordinarily have access to.
Choosing the best credit card is an important decision, but you don’t stop there. You should use your card the right way to get the most for your money. If you’re trying to set credit, pay your bill in full every month and don’t use too much of your available credit. You have to stick to your debt payoff plan if you snagged a 0% APR deal. And if you’re trying to rack up rewards, use your card for everyday purchases and pay your bill in full every month.
The best credit card may help you achieve your financial goals in the most affordable, practical way possible. Whether you are trying to build credit, borrow money or earn rewards. So, you should pick the credit card carefully!