How To Choose The Best Credit Cards

Credits cards are now the most widely used mode of payment across the globe. People often prefer paying through credit cards because it is more convenient and easy to carry around. They also come with many added benefits and can prove to be a useful source of financial aid in times of financial constraints. Using the card appropriately also had its own set of advantages like increasing credit scores, redeeming lucrative credit card offers in the future and becoming eligible to apply for some of the best credit cards.

The great demand for such cards has made financial institutes come up with a variety of credit cards to suit different needs. The plethora of these cards has also made it difficult to choose the best credits cards. There are many factors that need to considered in this aspect.

image of two of the best credit cards, a visa and mastercard

Benefits Of Having One Of The Best Credit Cards

Credit cards can prove to be very helpful if you use it in the right manner. Most credit card companies never compromise on their interest rates but prefer giving away free stuff, discounts, reward points and cash back offers to its users. For example, if you use a credit card to make a huge purchase, you may be entitled to a 1% rebate.

The reward points you earn by using you credit cards allows you to buy items at reduced prices, book flight tickets, get free gifts and even make purchases on items the credit card company offers. Having a credit card also works to your benefit when you want to take bigger loans or out of cash. Making your payments on time increases your credit rating, making your eligible for bigger loans in the future.

How to Find The Best Credit Cards

Finding the best credit cards can be quite a tedious task if you don’t know where to start your search from. The best way to do it is to look up a few credit cards and see what they are offering, having a clear picture in mind about the things you’re looking for in your credit card. You can either use the Internet or ask friends for their advice, the former method being the better choice. Make a list of the cards that appeal the most to you and then compare the plans they have to offer. This gives a clearer picture of what credit card deals are being offered currently. Once you’ve decided on the card, begin the application process and submit the required documents.

Key Features Of The Best Credit Cards

All good credit cards companies draw a clear picture about their interest rates, financial charges and fees at the time of application.

The best credit cards provide a good lot of additional benefits like rebates, discounts, EMI offers, no annual or joining fee and funding for big purchases.

Some good credit cards also have extended warranties on some purchases. In case of loss or damage of a product purchased with a credit card, the issuing company either repairs or replaces the product, but the original bill needs to be provided.

You probably have heard the frightening tales of people being snowed under mountains of credit card debt. While the careless use of the credit card is the usual culprit for their misfortune, still, you stand a better if, at the outset, you stack the deck in your favor. This means that you should choose the best credit cards for you, the card that will make life more convenient but will not burn you in the process. It is also the one that will give you a financial edge. How do you go about finding the best credit cards available to you?

Know your own money habits

When you use a credit card, you are essentially taking out a loan. If you pay the entire balance, the loan is fully paid. But if you only pay a portion of it, then you have to pay interest on the remaining balance. If you are the first type, look for a card that does not charge an annual fee, have a good rewards program and one that gives a grace period of at least 21 days. A grace period is the period from end of your billing cycle until the due date when no interest is charged. Just make sure that you pay on or before the due date. If you are the latter type, then the best credit cards for you are cards with low interest rates. Compare the rates among several cards.

Do your research

There are credit card companies who will mail you a pre-approved card. Don’t limit yourself to these cards. The best credit cards are the ones that fit your personality and your situation. There are plenty of information in the internet. Read blogs and review carefully before signing up.

Study also the method of computation that is used by the credit card companies. The best credit cards are those that calculate based on adjusted balance or average daily balance. Also, Look at the extra fees that are charged and make sure these are for things that you actually use.

Don’t forget to check your credit union

They usually offer lower interest rates and penalty fees than banks. They are also less likely be deceptive or unfair to their members. So if you are a member of a credit union that offers credit cards, apply for one with them.

Review their rewards programs

The best credit cards for you will be one that has a rewards programs that offers things that you actually value. If you love to travel, get one that will give you frequent flyer miles on an airline that you use, or one that travels to a place that you want to visit. Your credit card might reward you with a Canon digital camera, but if you have no interest in taking pictures, then that is not the card for you.

Read the fine print

When searching for the best credit cards, read the terms of the contract too. It can be exhausting trying to read the fine print (literally), but some credit cards mention extra features that you might want. For example, some offer travel assistance which can be great for business travelers. If you like to go to the theater or dine out, your card might have a concierge service that can assist you.

In the end, the best credit cards are the cards that offer services that you actually use and the ones that will enhance your enjoyment of life.

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