Here’s how you can land the best credit card offers
Currently, there is an influx of credit cards. This is because today they don’t just deal with the standard credit, and debit transaction but with are loaded with several lucrative incentives. However, before starting the hunt for the best credit cards, you must understand and manage your finances cleverly. If you are looking for the perfect card, read further so that you can make a smart pick.
What are the benefits of having credit cards?
We live in a faced paced economy, which means that cash transactions are not always possible especially for big purchases. In such situations, a credit card can come in handy. Apart from portability, here are some of the key advantages of having credit cards.
- Emergency – When you lack sufficient money in times of crises, a credit card can swiftly come to your rescue.
- Security – A credit card comes with layers of protection, so you don’t have to worry about fraudulent activities. Lenders ensure that you are equipped with sophisticated credentials and security alerts in the forms of text messages and emails. In the case of any unusual activities, you can quickly get in touch with the credit card company and block the card.
- Credit building – Responsibly using your credit card can do wonders for your credit score and report. This would be especially beneficial if you are in quest of loans.
- Rewards – Almost all credit cards today offer some incentive. These could be points that could be used for purchasing air tickets or additional discounts on shopping. The rewards you get are majorly based on the type of credit card you use.
Which are the best credit cards?
The following are some of the popular credit cards you can consider getting –
- Capital One Venture Rewards Credit Card
- Chase Freedom Unlimited
- Discover it for Students
- Chase Sapphire Preferred Card
- Citi Simplicity Card – No Late Fees Ever
- Hilton Honors Surpass Card by American Express
- Chase Freedom Unlimited Credit Card
- Southwest Rapid Rewards Plus Card
- Blue Cash Preferred Card by American Express
- Costco Anywhere Visa Card by Citi
What are the types of credit cards?
It is crucial that you understand the varieties of credit cards, as they are tailored according to specific needs. Some of the common types that you can find in the market are:
- Standard – These are straightforward, i.e., they fulfill the primary purpose of lending finances. The credit limits for such cards are based on the user’s income and credit history. They are suitable for people who are just looking for pure functionality.
- Rewards – As the name suggests, these cards offer rewards every time you use it. They are further bifurcated into four main categories, i.e., travel, general, gas, and cashback. There might be additional types based on the credit card company.
- Balance transfer – Such cards allow you to transfer your debt from one card to another. The company then gives you a prescribed period to pay off your debt at low or 0% interest.
- Secured – These credit cards require you to pay a security deposit so that you can activate your card for use. This is an excellent option for individuals who have had no credit or bad credit history, as it’ll help them be thriftier.
Apart from the types mentioned above, student, low-interest, subprime, charge, prepaid and business credit cards are also offered by lenders.
How to use a credit card judiciously?
- Ensure that you opt for a credit card with a lower limit.
- Before making an impulse purchase, ask yourself “do I really need this?”
- Try using your credit card only for emergencies and use your debit card or cash as and when you can.
- Religiously pay your credit card debt every month.
How to choose the best credit cards?
Firstly shortlist the credit card companies and type of credit card you want. For instance, if you are looking for the best Capital One credit cards, research about their top-rated products based on consumer reviews and features such as –
- Interest rates
- Annual percentage rate (APR)
- Best credit card offers such as loyalty points, rewards, etc.
- Annual fee
- Credit limit
- Minimum repayment every month