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With so many options to choose from, finding the best credit card for you can be tricky. Those credit offers in the mail look attractive at first, but beware-most of them come with high interest rates. Whether you’re looking to build your credit, or to just have a card for household emergencies, researching different credit cards can help in deciding what works for your lifestyle.
Cards to Build Credit
It starts with figuring out which cards you qualify for and how to decide which type of card best suits your needs. Your credit score must work with cards designed to build up or repair credit. Pick a starter card and use it until your credit rating improves enough to move to a better credit card. Don’t focus on travel rewards or cashback rates unless they come with something else. If you’re just starting to build a credit history, a cashback card may not be an option for you, and there are fewer reward options for people with limited balances. In that case, you’ll want to find a card that charges less and offers more perks. For example, a student credit card might be right for you if you’re new to the credit business. Work on using the card to build up your balance and you’ll be well on your way to a traditional reward card in no time at all.
Cards With Rewards
A Reward Credit Card uses your card to make purchases that give you (the cardholder) some kind of reward, usually a percentage of your purchase price. Reward cards come in two main variants: cashback rewards and points-and-miles rewards, also known as travel rewards. A number of credit card providers are updating their rewards programs with more ways to earn cash, miles or points for everyday purchases such as gasoline and groceries. This can increase the value you can get from a card for your current lifestyle, from smart-shop housekeeper to big-spending globetrotter. As a reference point, the current Credit Card Landscape Report has been updated with an average of the most important credit card features, fees, interest rates and rewards.
The best credit cards for rewards, cash and travel are easier to access than you might think. Capital One’s Quicksilver Cash Rewards credit card and other fee-free cards do not offer late fees or first-time penalties, such as the Discover Card. Many credit cards with high rewards rates come with annual fees. Choosing which credit cards have the best deals is akin to choosing which type of card to use. You need to find out which sign-up bonuses, discounts, and other incentives match your spending habits and goals to get a card in the first place. For example, choosing a card with a high mileage bonus may make sense if you are a frequent traveler or have a specific plan to use the bonus on an expected trip. There are cards that offer special rewards for spending on groceries. Check whether a card that offers special rates for wholesale clubs makes sense to you.
Cards with Flight Rewards
Before you book a flight with a credit card, look for credit cards that offer special rewards for purchasing airline tickets. Certain cards allow you to redeem tickets for others or for yourself. American Express “Blue Cash Everyday (r) Card has no foreign transaction fees and some travel cards waive fees, while Discover and Capital One offer their products without foreign transaction fees. These cards are ideal for travelling abroad or making purchases through a foreign bank.
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