A credit card is an important financial tool for most people. Without a credit card your financial freedom and purchasing power becomes limited. Different consumers used the credit card differently. Some use it because they travel extensively and needed to make travel reservations on airlines and hotels, where others use it to shop online, to make high-end purchases which they can pay off in installments by revolving the balance, for making daily purchases and to help with budgeting monthly expenses. In order to judge how a credit card is best suited to you need you need to consider the factors which are relevant to your usage. Listed below are the common factors that are evaluated to choose the best credit card for your needs.
Card Interest Rate
This is one of the foremost factors upon which a credit card choice is made. This factor is critical for a person who revolves his balance from one month to another. If you intend to use a credit card and pay off your balance gradually in installments the amount of interest rate applicable on the credit card will determine how much money you have to pay extra as interest. Several credit cards offer an introductory low rate of interest initially which is good for a purpose like balance transfer. But if you plan to use this credit card on a regular basis as one of your main stream credit cards then you need to look at the interest rate applicable after the introductory rate of interest is over.
Balance Transfer Credit Cards
In order to find a credit card for the purpose of balance transfer, you typically need to find a credit card that offers a very low or even 0% interest rate for introductory period. This will allow you to pay off your balance at a much lower interest rate while the introductory rate of interest is active. There is usually certain processing fee associated with a balance transfer. This also needs to be considered in order to judge whether the balance transfer is in fact a profitable move.
Bonuses and Rewards Cards
Many credit cards offer rewards points, gifts or bonuses for usage. Different credit cards have a different way of rewarding the consumers. You have cash back credit cards, airline miles credit cards, gifts credit cards etc. Depending upon your lifestyle different kinds of rewards and bonuses may make more sense than others. There is no point in choosing our rewards credit card if the rewards offered are not of any use to you or will not be utilized by you in the future. Certain credit cards also attach a time frame limit during which the rewards can be utilized. This could be detrimental to the overall benefit that the rewards program has to offer you.
Annual Free and Charges
Typically unsecured credit cards are given to the consumer at no charge. The processing is typically done free of cost as long as the consumer is able to meet the qualification criteria of the creditor. There is also no annual fee attached to a conventional credit card. However every credit card company is different and there are certain kinds of fee attached to special credit cards that have a specialized features attached to them.