So many credit cards claim to be the best credit cards out there — the problem is that many of them are right. Each credit card has various qualities that make it the “best” for different people. We have put together a guide to help you through the maze of the best credit cards and find one that perfectly fits your needs.
What Do You Want?
Think about the qualities that typify the best credit cards in your mind. This can mean different things to different people, because everyone has different spending habits, and everyone values different qualities in their own way when evaluating the best credit cards.
Compare annual fees. Some people believe the best credit cards have no annual fee, while other people are willing to pay a minimal annual fee in return for various other benefits.
Compare interest rates. When you are looking for the best credit cards, you need to be sure you know what the interest rate will be over the life of the card. Some of the best credit cards may not look like they have the lowest interest rate at the beginning, but instead have a fixed interest rate. Other people may be interested by credit cards with low introductory rates, but you must read the fine print and be aware that the interest rates can jump significantly after the introductory period. If you think the best credit cards have variable rates, be sure to know when the rates will change and how you will be notified of the changes.
Find out about all of the required fees before you sign on with any of the credit cards you find. Many people think they have found the best credit cards and then discover they are going to be held responsible for more fees than they first expected. Ask about application fees, over-the-limit fees, balance transfer fees and any other fees.
Look for the best credit cards to fit your financial needs, too. You are getting a credit card for “credit,” so look at the credit limit on the cards. Also, if you are a person who plans to pay your bill off every month, find out the grace period on the cards. If you are someone who makes few purchases or consistently pays off your bill each month, the best credit cards for you are probably not those that begin charging you interest from the moment you make your purchases.
Best Credit Cards for You
Think about your spending habits and what you use your credit cards for. This will help you decide on the qualities that make up the best credit cards for you. As mentioned before, some of the best credit cards for one person can end up being the worst credit cards for someone else. Here are some credit card types and suggestions for individuals they may work best for:
- Low-interest - These are probably the best credit cards for you if you carry a balance each month.
- No fee - If you can find no annual-fee credit cards, this is a great option for many people.
- Rewards - These are probably the best credit cards for people who pay off their bills every month. You can receive rewards in the form of airline miles, merchandise, rebates or even cash.
- Business - Business credit cards are the best credit cards for small and large companies for easier maintenance as well as bonus perks.
- Student - Students can build up credit with their own best credit cards, which approve “starving students” and have special safety features such as lower lines of credit.
- Secured - Secured credit cards can be the best credit cards for people with poor credit, since they usually have a hard time getting approved for credit cards.
By D. Blair Thompson