Picking the right credit card is important. You want a card that will give you the most rewards for your spending, but that also has a low interest rate.
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Credit Card Types
There are many different types of credit cards available on the market, so it can be hard to decide which one is right for you. The most important factor to consider is what you will be using the credit card for. If you are looking for a credit card to use for everyday purchases, you will want to look for a card with low interest rates and no annual fee.
Cash back credit cards
Cash back credit cards are popular because they give you a percentage of your spending back in the form of cash refunds or statement credits. The best cash back credit cards offer high rates in multiple categories, including gas, groceries and travel. Some even offer bonuses for signing up and spending a certain amount within the first few months.
To choose the best cash back credit card for you, first consider your spending habits and choose a card that will give you the highest rate on the things you spend the most money on. You’ll also want to look at the sign-up bonus and any other perks the card offers, such as extended warranty protection or purchase protection. Be sure to read the fine print so you understand how the cash back program works and what (if any) restrictions there are on redeeming your rewards.
Travel rewards credit cards
If you love to travel, a travel rewards credit card can be a great way to earn free or discounted trips. How this type of card works is you earn points for every dollar you spend on the card, and then you can redeem those points for travel-related expenses like airfare, hotels, rental cars, and more.
One thing to keep in mind with travel rewards cards is that they often come with an annual fee, so be sure to do your research to make sure the card makes sense for your individual spending habits. Also, many travel rewards credit cards require good to excellent credit for approval, so if your credit score is on the lower end you may not qualify for the best offers.
Here are some popular travel rewards credit cards:
-Chase Sapphire Preferred Card: This card offers 2x points on travel and dining and 1x points on everything else. There is a $95 annual fee (waived the first year), and no foreign transaction fees. You’ll need good to excellent credit for approval.
-Capital One Venture Rewards Credit Card: This card offers 2x miles per $1 spent on everything. There is a $95 annual fee (waived the first year), and no foreign transaction fees. You’ll need good to excellent credit for approval.
-Citi Prestige Card: This card offers 3x points on airfare and hotels and 2x points on dining and entertainment. There is a $495 annual fee, and no foreign transaction fees. You’ll need excellent credit for approval.
Balance transfer credit cards
Balance transfer credit cards can help you save money on interest and pay down debt faster. But they’re not for everyone.
Balance transfer credit cards typically offer a low intro APR on balance transfers for a limited time, usually 12 to 21 months. This can help you save money on interest and pay down debt faster. But balance transfer credit cards typically have a high regular APR, so you’ll need to make sure you can pay off your debt before the intro period ends.
There are also balance transfer fees to consider. Most balance transfer credit cards charge a fee of 3% to 5% of the amount you transfer, with a minimum of $5 to $10. So if you transfer $10,000, you may owe a balance transfer fee of $300 to $500.
Before you apply for a balance transfer credit card, take a close look at your finances to make sure you can handle the responsibility.
Credit Card Issuers
American Express, Visa, Mastercard, and Discover are the four main credit card issuers in the United States. They each have different benefits and perks, so it’s important to pick the right one for you. Let’s take a look at the different issuers and see which one is the best for you.
American Express is a credit card issuer founded in 1850. Amex is best known for its charge cards, which require the full balance to be paid off each month. Amex also offers credit cards with revolving credit lines, which allow cardholders to carry a balance from month to month.
Amex is one of the four major credit card issuers in the United States, along with Visa, Mastercard, and Discover. Amex cards are accepted by most merchants that accept credit cards, although some smaller businesses may not accept them.
Some of the popular American Express credit cards include the following:
-The Platinum Card® from American Express: This is a luxury rewards card that offers perks like 5x points on airfare booked through Amex Travel and access to Amex Centurion Lounges. There’s an annual fee of $550.
-The Blue Cash Everyday® Card from American Express: This is a cash back card that offers 3% cash back at U.S. supermarkets (up to $6,000 per year) and 2% cash back at U.S. gas stations and select department stores. There’s no annual fee.
-The Starwood Preferred Guest® Credit Card from American Express: This is a hotel rewards card that offers 3x points on eligible Marriott hotel spend and 2x points on other travel purchases like airfare and dining out. There’s an annual fee of $95 (waived the first year).
Chase offers a wide range of credit cards, from those that earn you rewards points to those that offer low interest rates. You can choose from cards that offer cash back, travel rewards, or a combination of both. There are also cards specifically designed for students and businesses.
Here are some of the most popular Chase credit cards:
-The Chase Freedom® card offers 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. You’ll also earn unlimited 1% cash back on all other purchases. There’s no annual fee for this card.
-The Chase Sapphire Preferred® Card is a great choice for travelers, as it earns you 2x points on travel and dining expenses. You’ll also get 1 point per dollar spent on all other purchases. There is an annual fee of $95 for this card.
-The Ink Business Cash℠ Credit Card is ideal for small businesses, as it offers 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each year. You’ll also earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each year. There’s no annual fee for this card.
Citi offers a wide range of credit cards, so you’re sure to find one that’s right for you. From cash back and travel rewards to low interest rates and no annual fees, Citi has a card for every type of spender.
Here are some of the most popular Citi credit cards:
-Citi® Double Cash Card: This card offers 2% cash back on all purchases, with no limits or categories. There’s also an introductory 0% APR period on balance transfers for 18 months.
-Citi Rewards+℠ Card: This card offers 2x points on supermarket and gas station purchases (up to $6,000 per year), and 1x points on all other purchases. You’ll also get a 10% point bonus when you redeem your points for cash back, travel, gift cards or merchandise.
-Citi Premier℠ Card: This card offers 3x points on travel and gas purchases, and 2x points on dining and entertainment. You’ll also get a $100 annual travel credit and an introductory 0% APR period on balance transfers for 18 months.
How to Pick the Right Credit Card for You
when it comes to credit cards, there are a lot of options out there. It can be difficult to know which one is right for you. There are a few things you should take into consideration when you are looking for a credit card. The first thing you should consider is what you want to use the credit card for. There are cards for cash back, rewards, travel, and more. You should also consider the interest rate, fees, and credit limit. Once you know what you want and what to look for, you can start comparing cards to find the right one for you.
Consider your spending habits
When you’re trying to pick the right credit card, it’s important to think about your spending habits. Do you tend to spend a lot on travel? Do you have a big balance to carry over every month?
If you spend a lot on travel, you might want to consider a card that offers rewards like free airfare or hotel stays. If you have a big balance to carry over every month, you might want to consider a card with a low interest rate.
It’s also important to think about whether you’re looking for a card with perks like cash back or points that can be redeemed for merchandise. Some cards offer both types of rewards, so it’s up to you to decide what’s more important.
Compare credit card features
There are a lot of different credit cards out there, and it can be tough to decide which one is right for you. The best way to figure out which card is best for you is to compare the features of each card and see which one matches up best with your needs.
Here are some things to look for when you’re comparing credit cards:
-Annual fee: Some credit cards have an annual fee, while others don’t. If you’re not sure you’ll use the card enough to justify the annual fee, then you might want to steer clear of that card.
-Rewards: Some credit cards offer rewards like cash back or points that can be redeemed for travel or merchandise. If you’re the type of person who likes to get rewarded for using your credit card, then you’ll want to find a card that offers a good rewards program.
-Interest rate: The interest rate on a credit card is important if you think there’s a possibility you might carry a balance on your card from month to month. A higher interest rate will mean that you’ll end up paying more in interest charges if you do carry a balance, so you’ll want to find a card with a low interest rate if this is a concern for you.
-Foreign transaction fees: If you travel internationally or make purchases in foreign currencies, then you’ll want to find a credit card that doesn’t charge foreign transaction fees. These fees can add up, so it’s worth finding a card that doesn’t have them.
Read the fine print
The best way to avoid any nasty surprises is to read the fine print before you sign up for a card. That way, you’ll know exactly what you’re getting into.
Here are a few things to look for:
Annual fees: Some cards come with annual fees, which can range from $20 to $500. If you’re not planning on using the card often, or if you’re trying to get out of debt, a card with an annual fee may not be the best choice.
Foreign transaction fees: If you travel overseas often, look for a card that doesn’t charge foreign transaction fees. These can add up quickly, and they can eat into your rewards.
Balance transfer fees: Balance transfer fees are usually around 3% of the amount being transferred. So, if you transfer a balance of $5,000, you could be charged a fee of $150. Make sure you factor this in when you’re comparing balance transfer offers.
Cash advance fees: Cash advance fees are typically around 5% of the amount being withdrawn, with a minimum fee of $10 or $20. So, if you withdraw $100 from an ATM, you could be charged a fee of $5 or $10. And if you withdraw $1,000 from an ATM, you could be charged a fee of $50. Again, make sure you factor this in when you’re considering taking out a cash advance.