How to Choose the Best Credit Cards

Choosing the best credit cards is a tough task. Today with the number of credit card offers advertised everywhere consumers find it difficult to choose the best deal for them. Most of them apply for a credit card that is not suitable for their spending purposes and lifestyle.

If you are one of those consumers then read on to find tips on finding the right credit card offers that best suits your needs. Fact is there are many different types of credit cards available — so many to choose from. Even though there is no “best” credit card for all purposes, there are credit cards out there that are the best for you.

Different Credit Card Offers

The best credit card varies depending on your personal preference. For example, if you are often travel by air, a co-branded airline credit card might be better than the general purpose one. These airline credit cards offer discounts, rebates and other kind of rewards when you use them for paying for the airline tickets.

Similarly, if you are a frequent shopper you may benefit from a credit card offered by your favorite retail store. A lot of big retail chains do offer co-branded credit cards to their customers and these credit cards offer rebates or discounts. You get reward points for making payments at the retail store and later redeem the accumulated points for cash or rewards.

Some credit card companies also offer low APRs with no annual fee on the first year of use — as long as the user is able to meet specific purchase and payment targets. But these may change to higher APRs and annual fee after the promotion period is over. This type of credit card is suitable for short-term use, such as balance transfer.

On similar lines, there are also credit cards for gas stations and grocery stores, which you can opt for if you have a favorite gas station or a favorite grocery store where you shop a lot. However, if you don’t purchase a lot as well as have no specific needs, you might apply for a general purpose credit card that gives reward points on every purchase you make on the card.

Compare Credit Card Deals

Credit card companies offer different features, APRs, annual fees and promotions. In choosing which credit card is best for you, understand your spending habits and lifestyle. Ask yourself the following questions. Do you want to pay for the balance in full every month or carry a balance instead? How far can you go with the credit card? What type of benefit packages that would suit your needs?

If you want to carry on a balance, look for the credit card that offers the lowest APR or a long interest-free period. However, if you intend to use your credit card as a payment tool and pay for the balance in full every month, then you may disregard the interest rate.

Credit limit determines how far you can go with your card. Determine the lowest limit that would fit your needs, and then add 30% to the limit you agreed on. This will help you use the card and still have enough value if an emergency arises.

Credit card companies offer various bonuses on their cards. If you wanted to sign up for these packages check how you will pay your credit card bills. If you’re going to pay the balance in full every month then cash-back or reward points are the right benefit package for you. But if you plan to carry a balance every month the benefits will not justify the interest charges.

Also, check out other fees attached to the card. These are the penalty rates and other charges like over the limit charges, balance transfers, and late or missed payment charges. Make sure you understand how long or short its grace period is since interest charges kick in when the grace period lapses.

Apply for the Best Credit Card Online

Once you understand your purpose for getting a credit card and check all credit card offers you can easily make your choice and go for a credit card offer that covers most of your needs and gives most benefits. You will now be ready to apply for a credit card online.

There are a lot of credit cards to choose from. You can find great companies and banks that offer the best credit card for your needs. You can choose to go with a company or bank that’s local to you, or get online and look for your credit card. As long as you know what you want the Internet can be a great resource for credit cards. Online you’ll save yourself a lot of time and money to find the best credit card for you.

How to Choose the Best Credit Cards was last modified: April 10th, 2014 by Paul Sarwana