The question of which one of the many credit cards available is the best credit card is one that each individual needs to decide for themselves. Ultimately, the best one is the one that meets the consumer’s needs. The key to making a good choice about this financial product is to consider a number of options. What is your goal? The best credit card choice for you is based on if you want to build credit, get rewards or get a lower interest rate.
Credit Cards to Help Establish or Build Credit
A person who has never had a credit card on their own before or who wants to build up their credit rating after running into financial difficulty may want to consider a secured credit card. This type of credit card requires the customer to put up a certain amount of money when the account is opened.
The limit on the card is the same as the amount of the security deposit the cardholder puts up. He or she can get a card with a limit of only a few hundred dollars or several thousand dollars, depending on the credit card company. The money is deposited into an interest-bearing account and is held as security for the credit card account. If the customer keeps the account in good standing for several months, he or she may qualify for an unsecured credit card.
Credit Cards Offering Rewards
There are many credit card options available for people who are interested in collecting rewards. If you are interested in or planning to travel, consider getting a rewards credit card that offers reward miles on purchases. Some will offer two air miles for every dollar you charge on the card. Charging an airline ticket on your card may qualify you for bonus miles.
Not all credit cards offering travel rewards require the cardholder to use them on airline travel. They also have the option of redeeming points to upgrade their room or for a free stay at participating hotels. Some cards will allow customers to redeem their points for merchandise. The choice between an airline credit card or a more general purpose travel credit card (or even a hotel credit card) is up to you to decide based on your travel habits.
Gas credit cards are another option for customers. Depending on the company, you may be able to get up to a 5% discount on your fuel costs. Some options are offered in conjunction with specific gas companies, while others offer a rebate from any fuel retailer.
Credit card companies offering rebates on gas prices may also offer rebates on other kinds of purchases. Cards are available offering a break on prices at major grocery chains. Some of them give cardholders a percentage back on other purchases as well.
Some credit card offerings offer customers a certain percentage of cash back on their purchases. Others allow them to accumulate points based on the amount purchased and apply them to merchandise or other rewards. For those consumers who want to use the points they accumulate to help a cause they believe in, cards that benefit charities are available. Cash back credit cards are great because you typically receive cash back that you can use for anything you like and of course charity credit cards are great because you can help a support a cause you believe in.
Low Interest Balance Transfer Cards
Some credit card customers may be shopping for a new card to get a lower rate of interest. For them, a low or zero-interest-rate balance transfer card may be the way to go. They can get the benefit of lowering the amount they need to pay on the account, which frees up much-needed cash. Not all of these cards offer the same terms. A consumer needs to read the fine print to understand how long the lower introductory rate will last and what the permanent interest rate on the card will be.
There may be other conditions attached to this type of card designed to discourage a new customer from continuing to open accounts and continually transfer balances to the next card. Unless there is a significant reduction in the interest charged on the new credit card account from the existing one, this may not be the right decision. On the other hand, when there is at least a few percentage points difference involved, this choice can make sense to consumers who are looking to save some money.
Compare the Best Credit Card Offers
There are many different credit card options on the market. As a consumer, it’s important to consider your needs and wants first. Otherwise, the number of options may seem overwhelming. If you can narrow down what you are trying to achieve by opening a credit card account or what kinds of rewards are most important to you, then you will be able to focus your search on the ones that fit your needs best. To help you choose the right one, why don’t you click on the free credit card “Chaser” to start comparing the best credit cards right now?