Best Credit Card, Finding the best credit card is not always easy. Card issuers usually make use of your credit scores as part of the criteria when determining whether or not to offer you a new card. Understanding your scores will help you apply to cards which better suit your personal credit profile. However, if you are struggling with trying to improve your score, it may seem like there’s no hope. If this describes you, relax: there are things you can do to improve your financial profile and get approved for the best cards.
In general, the best credit cards will have low or zero interest rates. Credit card companies use your interest rates to set their profit margin and they also make money from over-the-limit and late-payment fees. Knowing that these charges can eat away at your monthly budget, it’s important to avoid putting yourself in high-risk situations where you’ll fall behind on payment. This means avoiding making purchases beyond your spending capacity and only using cash for large-scale purchases.
Credit cards which offer reward programs also tend to offer low or no interest rates. The best credit cards will feature air miles, cash back, or other form of incentive to earn a higher APR. If you transfer balances to an introductory offer card, this can keep you from incurring a higher APR as you build new credit. Balance transfers also allow you to continue enjoying the benefits of low APR after the introductory period is ended.
Probably the most important thing to look for in the best credit cards is their ability to offer rewards. Reward programs can either lower or increase your APR. The best credit cards will feature low, zero, or even low APR for the most part. This allows you to save money by being charged a lower interest rate, or even saving money each month when interest rates are high.
If you’re looking to rebuild credit, a great first step is to transfer balances to the best credit card deals. After all, it’s much easier to build credit when you have several cards with different payments and different APR. You can use the extra cash you have to pay down debt and save money each month. One of the easiest ways to do this is to transfer your balances to zero or low APR cards. Transferring balances can also help rebuild credit by helping you maintain good FICO scores.
For many people, they would like to have perks for their spending. Some rewards credit cards offer points or other incentives for spending. These rewards may not always be useful money-makers, however. If the incentives are only temporary and hard to qualify for, they may only make the credit user spend more money than necessary. This is why many people prefer third-party advertisers on their rewards credit card.
When you compare rewards credit cards, it’s important to look at how long the offers last. If an offer seems too good to be true, then it probably is. Many companies that offer one-time bonuses will disappear after just one year, leaving you high and dry without your bonus. The best credit cards offer one-time bonuses that are beneficial both long term and short term. They give you the benefit of earning money over a longer period of time, and in some cases, you receive your money back after the bonus period has ended.
Other rewards credit cards offer additional perks, such as airline miles or shopping at one of their participating stores. Again, these perks may not necessarily be worth the cost of the card. However, if you travel a lot, or are a major spender at one of their participating stores, then these perks might be worth the cost of the annual fee. Also, keep in mind that the three largest credit card companies, which are all competing for your business, will all offer cards with varying restrictions, fees, and limits, so it’s best to compare all the cards available to determine what benefits suit you best.