In more recent times, credit cards have evolved. Long gone are the days of just two, three, or four credit cards. We started out with Master Card, Visa, and American Express. Then, along came Discover. That was pretty much it for major credit cards. Then, banks jumped into the arena and started issuing credit cards. The market got competitive and soon credit card companies soon found they had to offer "extras" to compete for customers. Now, there are literally thousands of credit cards to choose from and the process of choosing just one—the best one---can be daunting.
Before you even start to weigh your options you whittle down your choices, you need to do a little self-discovery. There are several points to ponder about why you need a credit card, how you will use a credit card, and what type of credit card will best meet your needs.
You need to ask yourself what is the primary reason you need a credit card and how will you use it. Notice the word need? You need to consider if your attempt to get a credit card is for a needful purpose, like emergencies. A lot of people say they are going to only use it for emergencies, but then whip it out to pay for every purchase from groceries, to gas, to that fast food at the drive thru. You need to realistically predetermine what you want the credit card for and how you will be using it. This really effects what type of card you should get.
If you really are going to use it only for emergencies and pay it in full whenever you have a balance, then interest rates are not an issue and a card with no annual fee would be best for you. If you are going to use it to pay for everyday purchases and carry a balance, then you certainly want a card that has low interest rates. In addition to low interest, the best credit card for you will be one that offers a high credit limit. This would be the best credit card for you because you don't want to max out your credit card or hover just at your limit every month; doing that can cause your credit score to take a nosedive.
If you are going to use a credit card for most purchases then consider a credit card that offers some rewards or incentives for your spending. To remain competitive many credit card companies are offering these "extras" to entice customers to pay for purchases with their credit cards. Some cards offer points for every dollar charged. These points can then be redeemed for various freebies and discounts. Some of the most popular points offers are for travel—with deep discounts on airlines tickets, hotels, and rental cars. If you travel frequently by air, then the best credit card for you may be one that offers airline miles as an incentive to use your credit card to pay for purchases.
Also, some credit cards have frequent flyer rewards. If you travel a lot then this may be the best credit card for you. Your flight miles can earn you bonus points towards other travel related rewards. If you are not much of a traveler, then such credit cards would not be best for you. You may want to consider a credit card that offers cash back incentives. These cards offer you money back for every dollar you change to their credit card. If you plan on using your credit card to pay for most of your purchases, then a cash back credit card would be the best choice for you.
There is no one best credit card for everyone! Be wary of any advertisement that makes that claim. The best credit card for any individual is the one that best fits their spending habits and suits their lifestyle. A person who doesn't travel doesn't need to rack up thousands of free airline miles. And, a person who is only going to use the card for emergencies doesn't need to pay exorbitant annual fees. But, someone who is going to use their card everyday may want to pay a higher annual fee in exchange for a low interest rate.
The best credit card to have is the one that best fits your needs. And the only way you will know which one is best for you is to be aware of your expectations and then match those with a card whose offers best meet those needs.
No comments:
Post a Comment