Having a credit card makes many things convenient. But while selecting a credit card it is always advisable to go for a credit card that is best suited to your needs and wants. This article provides guidelines in relation to the following:
- What are the factors to be studied while doing a personal analysis to find the best credit cards?
- Does a credit card suit you?
- What are the features to be noted while comparing the features of various credit cards?
If you want a credit card, you are not alone. Each year, millions of people in this country apply for credit cards and store cards which allow them to enjoy credit at various establishments. Having a credit card makes things very convenient, since it allows you to build your credit rating, and allows you to make emergency purchases as well as purchases online and over the phone.
However, it is important to choose the best credit cards. If you just select any credit card you are eligible for, you may end up with the wrong card features. You may also end up with a card that does not meet your needs.
Are You Right For A Credit Card?
Before you start looking for a credit card, you will want to ask yourself some questions to make sure that you are right for a credit card. This is something that many customers do not think about until it is too late. However, before you start to consider a credit card, you do need to ask yourself some questions about your ability to repay your cards.
If you are someone with a spending problem or a very unstable financial life, you may need to consider carefully before getting a card at all. Credit cards are a responsibility, and should only be part of your life if you can be responsible with credit.
Doing A Personal Analysis
Before you can tell what type of credit card will be right for you, you need to ask yourself some questions, such as:
- What is your age?
You need to be 18 years old to have most cards, although some store cards have lower age limits. Some cards offer special discounts or rates to seniors or young customers, as well. - What is your credit rating?
A credit rating is a number based on your history of handling financial responsibility. The higher your number, the more likely it is that you will be offered great rates and deals on credit cards. - Why you want a credit card?
How will you use your credit card? If you want a credit card for emergencies only, you can get a special card with few or no fees. If you want a credit card that you will use for everyday use, you will want a card that does not charge extra fees for frequent transactions. - What special card features you need?
If you collect air travel points or other rewards, you may want a card that allows you to collect extra points. If you will be using your card as photo ID, you may need a card that offers a photo feature. - Belong to any organizations?
Some groups, such as alumni associations, offer members great deals on credit cards. How much do you plan to spend with your card? You need to make sure that you can get a card that allows you to charge the amount of money that you will be spending on your card in a month. - Convenient method of payment?
Whether it is convenient for you to pay via telephone banking, online transactions, ATM, or in person, it is important to find a card that lets you pay in a way that will not be an annoyance. - Have other credit cards?
If you do, an extra card may be a significant extra expense. - What is your income?
It is crucial that you get a card that you can comfortably pay off each month on your earnings.
How To Compare Features Of Credit Cards
You will find the best credit cards only if you compare several cards and select the best possible choice. There are several ways to compare cards. For example, you can call several credit card companies and ask them to send you their best deal on credit cards. You can also talk to friends and family about their own cards.
You can contact any organizations or clubs you belong to in order to ask whether they offer any special credit cards to members. In any event, you should contact financial institutions or some other banks to find out about their credit card offers. Finally, you can also look at advertised offers in the mail and in newspapers. Doing all of this will take time but will give you several credit cards to compare.
If you have access to the internet, you can also quickly compare credit card offers online. This takes only a few minutes but lets you compare cards from many different companies so that you can be sure that you will find a card that meets your needs.
Features To Consider
Once you have several credit card offers before you, either on paper or online, it can be challenging to figure out which credit card is best. One of the best ways to do this is to compare the features of each card. Some features you will want to consider are:
Interest rates
By far the most important feature of any credit card is the interest rate. This rate is the percentage amount you will pay if you do not pay off your credit card in full each month. Even if you plan to never carry a balance, choosing the best low interest credit cards will ensure you will not have to pay a lot of extra money if you do have to carry a balance.
Acceptance
You need to ask where your credit card will be accepted. If the card you are considering is not accepted at most of the establishments where you do business, it will not be very convenient for you.
Yearly fees
Some credit cards charge annual fees to users. These range from modest to quite high. When comparing credit card features, it is important to choose a card with no annual fees or at least with fees that are very low.
Reward programs
Some cards offer points or other rewards as a thank you to their customers. While this is not an essential feature, it is a nice one to have and it can help you to get more money value from your card.
Member benefits
Some credit cards offer special benefits – such as free room upgrades in hotels or special front-of-the-row VIP status at some events or venues. As with reward programs, this is not essential in a credit card, but it can be a very nice feature.
Insurance
Many credit cards allow you to buy extra insurance. You may be able to buy low-cost life or accident insurance with your card, for example. More importantly, you may be able to buy overdraft insurance, which allows you to carry slightly more than your credit limit in an emergency.
Credit limit
You should compare credit cards to find out which card will offer you a credit limit that allows you to make the purchases you wish to make. If you plan on spending $1000 a month on your credit card per month, for example, it is important that you select a card that offers you this limit.
With these simple tips, you will be sure to find a credit card that will enhance your purchasing power!
