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What Does The Best Credit Card Look Like?

What is the best credit card? Is it an elusive fairy tale that doesn’t exist or is it a tangible item that you could one day obtain?

Believe it or not, the best credit card is indeed out there, but one person’s best credit card is another man’s nightmare.

Here are seven questions to help you find the best credit card for you.

1. Do You Hate a Balance?

If you pay your balance off in full each month and you can’t stand the thought of accruing interest, a rewards credit card is probably the best credit card for you. After all, you don’t pay interest anyway so a low-interest credit card isn’t going to do you any good.

You may as well be rewarded for your good spending habits and take advantage of the perks that rewards cards have to offer.

2. Do You Have High Debt?

If you carry large amounts of debt on your credit cards, a low interest credit card will be the best credit card for you. Rather than paying more for rewards (that don’t pay for themselves, no matter what they tell you) you will pay much less in interest and will be able to get your balances paid of faster.

3. Are You Planning To Make a Large Purchase?

Need to buy a stove, fridge, television or other big-ticket item? Then consider getting a credit card with a low introductory APR. If you only need six months to pay off a large purchase, a credit card offering an intro APR of 0-percent for six months is the best credit card for you.

4. Do You Travel Frequently?

Are you a jet-setter? Do you like to travel the world? If so, the best credit card for you would be a travel rewards card. In fact, some travel rewards cards even let you double dip.

What does this mean? Certain credit cards not only offer you miles for the purchases you make, but also allow you extra points for each dollar spent, which can be used for room upgrades at hotels and other travel perks.

5. Do You Believe in Charity?

If you like contributing to charities, you might be surprised to find out that there’s a credit card out there specifically for you. While some cards offer rewards, others will donate 1 to 2 percent of the amounts you charge to a specified charity.

While these cards also have higher interest rates than the low-interest credit cards, if you pay your balances in full each month they are a great way to do some good without spending anything out of your pocket, making them the best credit card for you.

6. How’s Your Credit?

If your credit has taken some significant hits lately, a secured card may be the best credit card for you. While a secured credit card does require a security deposit (acting as a savings account for you), it is a great way to rebuild your credit history and improve your creditworthiness in the eyes of lenders.

7. Are You All About Appearances?

Are you the type of person who really doesn’t care about interest rates, but you definitely want perks and you want to be recognized as the upper-class, respectable individual you are?

Then a carte blanch card (such as Diners Club and American Express) is the best credit card for you.

As you can see, the best credit card for one person isn’t necessarily the best credit card for everyone. After you have answered the above questions, look for an offer that matches the best credit card for you.

How To Identify The Best Credit Card Deal

When you hear your best friend or sibling tell you that he or she has landed on the best credit card deal, do not be tempted to run out there to apply for the same credit card for yourself. What may be best for another may not be for you. The reason for the above is simple – your spending tendency, needs and wants are not the same as another’s. You might be wondering what your needs and wants have to do with it but it is important to emphasize here that it is all about your expenditure patterns, needs and desires.

Considering the following before searching for a credit card will help you identify the best deal:

Credit history

No credit history

  • Your concern is to build good credit history.
  • If you think you may not use the card responsibly and get yourself into financial trouble, you may want to consider getting either a secured one or a charge card. Use them for about a year to build a good credit history and then proceed to obtain a general credit card when you are more confident.

Bad credit history

  • You should look into getting a secured card for about a year to rebuild a credit history.

Good credit history

  • You have the luxury to get any of them you want.

Payment patterns

Pay credit card balance fully every month

  • Since you don’t carry balances on your card, you may choose not to worry too much about APR or late charges but focus on other benefits such as rewards program.

Carry balances regularly

  • You need to ensure that the one you select charges low APR, late fees and over-the-limit fees.
  • Check that the credit card company does not practice the policy of universal default.

Only for emergencies

  • Rewards program does not really benefit you.
  • You may want to focus on no or little annual fees, interest charges and other rates.

Use regularly to make purchases or pay bills

  • Besides low APR, you may want to focus on selecting a card that has a good rewards program suitable for you. You may even earn enough points to earn cahback which can be used to pay your credit card bills.

Wants to be satisfied

Credit cards come with rewards program and other perks. Suppose you are a frequent flyer, you may want to consider getting an affinity card which is co-issued by an airline that you like. If you like shopping at a particular store, you may want to get a store credit card that provides you with discounts when you shop at that store. Look at your lifestyle and decide if an affinity or store card would benefit you. The best deal is all about you. You can embark on comparing and narrowing down your choices only when you are sure about what you need and want. However, your final choice also requires you to factor in external issues such as the terms, customer support and other charges.

Which Are the Best Credit Cards?

Comparing interest rates, annual fees, introductory offers and special benefits is easy. Compare cards over the long term. A credit card that offers you 0% interest for three months but then shoots up to 30% would not be as helpful as a credit card that has a steady 9% interest rate all the time. Compare different cards and terms before committing to one company as not all offers are the same. While you may get a ton of promotional offers in the mail, it is best that you see all of your options before making a decision that is in the best interest of your financial situation.

Interest is charged as a percentage of your outstanding balance (purchases and charges reduced by payments or credits posted). Interest rates are often higher than with standard cards; annual percentage rates (APRs) on affinity cards range from 15-22 percent. Many charge annual fees, while most standard cards do not. Interestingly, but 50% of those surveyed said that they planned to give gift cards. The truth is that practical gifts have never been so popular!

Interest charged could exceed the low payments your provider suggests, and you could see the debt snowball as your credit card provider profits. Balance transfer credit cards allow you to consolidate debt that is spread across several credit cards onto one card. The best credit cards in this category feature 0% APR for an intro period from 6 to 12 months. Balance transfer with zero APR for first nine months. After that period, it can be waived with at least nine purchases in a year.

Take time and search through these credit card offers and apply for the one that best meets your needs. Student’s credit cards are aimed at those with fair, bad or no history. These cards will help students improve damaged scores or even build credit history from scratch.

Bankruptcy destroys credit ratings. This can make getting credit cards difficult. Travel credit cards or a prepaid travel credit cards are products that most credit card companies offer. The travel credit card allows you to earn points when you use your card for purchases, which makes for the best travel credit card. If you carry a balance from month-to-month, you’ll pay less on interest charges over time.

Fees, such as balance transfer fees, cash advance fees, over the limit fees, and late fees, can really put a big dent in your budget. Choosing a credit card with low fees from the get go is one of the best moves you can make.

Basically, you divide the interest rate into 72 to see how long it will take for the debt to grow. If you are being charged at 12% your debt will double every 6 years (72/12=6). Cash-back and other value additions score over insurance when it comes to valuing adds. Cash back credit cards give you money back for each transaction and are offered by some credit card companies. How much cash back you will get per transaction is determined according to your credit rating.

Debt is NOT your friend before a failed application will also have a negative impact because of it will make to obtain credit. Debt is mushrooming at a surprising velocity, and a growing portion of people found their balances growing larger and larger. You’ve exceeded credit limit as you don’t want to find yourself. You are nearing it for it is Traveling to other countries and the credit card company is regarding the limit. You’ve got your own credit card per you have any bills on you have to prove you’re and It is showing your previous records with you might be qualified for lower rates.

Add in an economic downturn and people who have traditionally been able to avoid stress in the past are suddenly bogged down by it. From depression to sleepless nights and anxiety attacks, there are plenty of stress effects that can show up in a physical form in the body.

Check the payment option and guidelines on your bill. The best method of avoiding late fees is to set up a direct debit for the minimum payment each month. Check each section carefully for any errors. Note any errors you may discover on a separate piece of paper as you read over your report.

Thank you for taking your time to read this article. Your comments on this article will be highly appreciated. Information shared here does not constitute financial, legal, or other professional advice. This article is intended to provide general information only and does not give advice which relates to your specific individual circumstances. Information in this document is subject to change without notice. Any link-listing or ad-listing on this site does not constitute any type of endorsement.